What is hyperinfliation?

Answer 1

Hyperinflation is an extreme and rapid increase in prices, typically exceeding 50% per month, leading to a significant loss of the currency's real value. It often results from a combination of excessive money supply, loss of confidence in the currency, and economic instability. During hyperinflation, the purchasing power of money erodes quickly, causing people to revert to barter or alternative currencies. Historical examples include Zimbabwe in the late 2000s and Germany's Weimar Republic in the 1920s.