Hyperinflation
is the worst type of inflation characterised by rapid and out of control price
increases. The monthly inflation rate generally surpasses 50%. The main cause
of hyperinflation is an excessive and prolonged increase in money supply. The central
bank can increase money supply in response to different problems like servicing
debt or increasing economic output, but if it’s done without addressing the
main causes of the problems it can lead to just an inflation spiral. Hyperinflation
ExplainedZimbabwe had
recently experienced hyperinflation with an inflation rate that reached
79,600,000,000% in 2008. Prices were doubling every day and the unemployment
rate reached 80%. This is just
one example of how hyperinflation destroys an economy. There are also developed
economies that experienced hyperinflation like Germany in 1923 or Yugoslavia in
1993. Hyperinflation can lead to such a big loss of confidence in the monetary
system that people can switch to a barter economy.
Hyperinflation
is the worst type of inflation characterised by rapid and out of control price
increases. The monthly inflation rate generally surpasses 50%. The main cause
of hyperinflation is an excessive and prolonged increase in money supply. The central
bank can increase money supply in response to different problems like servicing
debt or increasing economic output, but if it’s done without addressing the
main causes of the problems it can lead to just an inflation spiral. Hyperinflation
ExplainedZimbabwe had
recently experienced hyperinflation with an inflation rate that reached
79,600,000,000% in 2008. Prices were doubling every day and the unemployment
rate reached 80%. This is just
one example of how hyperinflation destroys an economy. There are also developed
economies that experienced hyperinflation like Germany in 1923 or Yugoslavia in
1993. Hyperinflation can lead to such a big loss of confidence in the monetary
system that people can switch to a barter economy.
Hyperinflation
is the worst type of inflation characterised by rapid and out of control price
increases. The monthly inflation rate generally surpasses 50%. The main cause
of hyperinflation is an excessive and prolonged increase in money supply.
The central
bank can increase money supply in response to different problems like servicing
debt or increasing economic output, but if it’s done without addressing the
main causes of the problems it can lead to just an inflation spiral.
Hyperinflation
Explained
Zimbabwe had
recently experienced hyperinflation with an inflation rate that reached
79,600,000,000% in 2008. Prices were doubling every day and the unemployment
rate reached 80%.
This is just
one example of how hyperinflation destroys an economy. There are also developed
economies that experienced hyperinflation like Germany in 1923 or Yugoslavia in
1993. Hyperinflation can lead to such a big loss of confidence in the monetary
system that people can switch to a barter economy.
