What was hyperintation and what caused it?

Answer 1

Hyperinflation is an extreme and rapid increase in prices, leading to a significant decline in the purchasing power of currency. It typically occurs when there is an excessive supply of money in the economy, often due to government printing money to finance debt or deficits. Factors such as political instability, loss of confidence in the currency, and economic mismanagement can exacerbate the situation. Historical examples include the Weimar Republic in Germany in the 1920s and Zimbabwe in the late 2000s.