Hyperinflation
Hyperinflation is an extremely rapid period of inflation, usually caused by a rapid increase in the money supply. Usually due to unrestrained printing of fiat currency.See: How Does Gold Fare During Hyperinflation?
Unfortunately, there is no exact percentage where inflation turns from “ordinary Inflation” to “Hyperinflation”. So you can’t say for instance that 9.9% inflation is ordinary but 10% inflation is hyperinflation. Typically in hyperinflation it just gets progressively worse. Every month the inflation rate just gets higher and higher until the curve goes hyperbolic.
Classic Hyperinflation
Classic examples are the Hyperinflation of Weimar Germany and the more recent Zimbabwean Hyperinflation which reached 2.2 Million Percent.
For instance in Germany prices doubled in only 5 years between 1914 and 1919, but then things got really bad…
Imagine…
If you had your morning coffee in a café, and you preferring to drink two cups rather than one… it was cheaper to order both cups at the same time before the price went up on the second cup…See What is Hyperinflation? for the full article.
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About Tim McMahon
My grandfather lived through the Hyperinflation in Weimar, Germany--to say he was an original “gold bug” would be an understatement. I began reading his “hard money” newsletters at the age of 16 and the dividends from gold stocks helped put me through college. I began publishing the Financial Trend Forecaster paper newsletter in 1995 upon the death of James Moore editor of Your Window into the Future and the creator of the Moore Inflation Predictor©. FTF specializes in trends in the stock market, gold, inflation and bonds. In January of 2003, I began publishing InflationData.com to specialize in all forms of information about the nature of Inflation. In 2009, we added Elliott Wave University to help teach you the principles of Elliott Wave analysis. In January 2013, we began publishing OptioMoney. Connect with Tim on Google+.
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