HyperinflationHyperinflation 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.
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 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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