hyperinflation

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Hyperinflation

Hyperinflation

A very high rate of inflation, especially sustained over a long period of time. While there is no set numeric definition, it is associated with inflation percentages in the millions and billions. Hyperinflation is almost always caused by poor monetary policy on the part of the government. For example, a government that rapidly increases the money supply without a corresponding growth in GDP often undergoes hyperinflation. This situation often leads to (though it may also be caused by) wider economic instability, and may lead to a lack of confidence in the government. As a result, hyperinflation that persists for a long time may lead to the government issuing a new currency entirely.

hyperinflation

A very high level of inflation that tends to result in the breakdown of the monetary system, the hoarding of goods, and difficulty in achieving real economic growth. The classic case of hyperinflation occurred in Germany during the 1920s. Hyperinflation, which tends to motivate people to own real goods, adversely affects security prices.

hyperinflation

a very high level of INFLATION.

hyperinflation

a situation of high and accelerating rates of INFLATION. Unlike CREEPING INFLATION, which usually has little ill-effect on the functioning of the economy, hyperinflation reflects a situation where people begin to lose confidence in the value of MONEY and revert to BARTER. At this point there is a serious danger of economic collapse, accompanied by growing social disorder. Hyperinflation is a rare phenomenon, but when it does occur its causes are as much political as economic: for example, the excessive printing of money to finance government spending (during wars, in particular) or an acute shortage of goods and services combined with a large pent-up demand, as in periods immediately following the ending of a war.
References in periodicals archive ?
AoWe reiterate that Nigerians cannot afford the high fuel prices and will not accept the hyper inflation this misguided policy has created.
This type of 'defensive' deposit practice may indicate that depositors are not confident about the prospects of an economic recovery, and possibly fearful of looming hyper inflation," says Dan Geller, Ph.
Given the hyper inflation in world football costs, and the grotesque expectations of all the participants - and FIFA big wigs and journalists and politicians - in terms of their accommodation, travel and entertainment, it is probably essential that peripheral revenues are maximised in order to avoid a financial catastrophe on a Lehman Brothers scale.
But it's inflation or hyper inflation that poses the most tangible threat.
They also stopped to buy petrol on their way, a vivid illustration of the dire effects of hyper inflation on the country.
Those of us with memories long enough, remember the terrible mess Britain was in before her arrival; hyper inflation, endless strikes and trade union leaders who practically ran the country.
Hyper inflation within the health-care industry has priced many smaller employers out of major medical plans and literally driven business toward the limited-benefit plan arena.