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 ?
federal income tax purposes, a currency becomes hyperinflationary when it has a cumulative compounded inflation rate of at least 100% over three consecutive calendar years (the base period) (Regs.
Inflation dropped below 10 percent a year and Russia launched a new ruble, shorn of three hyperinflationary zeros and confined to a narrow exchange rate corridor at about six rubles to the dollar.
We continue to be sharply focused on our aggressive funding-the-growth initiatives and anticipate that the benefits from those programs, combined with our strategic worldwide pricing efforts, will help offset the impact of the strengthening dollar and enable us to achieve our profit target of mid-single digit earnings per share growth for the year, excluding the previously disclosed charge relating to the transition to hyperinflationary accounting in Venezuela in first quarter 2010.
The 2007 regulations adopt the rule in the 1988 temporary regulations in providing that tax pools in foreign subsidiaries cannot be adjusted, but amended returns must be filed if a foreign subsidiary's tax liability is denominated in a hyperinflationary currency.
O'Brien proposes a package of reforms to rein in the hyperinflationary cost of health benefits for employees and retirees.
These include: inventories -- idle capacity and spoilage; accounting policies and changes in accounting estimates; income taxes; financial reporting in hyperinflationary economies; joint ventures and proportionate consolidation; interim financial reporting; and research and development.
52, Foreign Currency Translation, for operations in a hyperinflationary environment.
985-1(b)(2)(ii)(E) requires that a qualified business unit (QBU) that has elected or been required to use the dollar as its functional currency under DASTM must change its functional currency as of the first day of the first taxable year that follows three consecutive taxable years in which the currency of its economic environment, determined under paragraph (c)(2) of this section, is not a hyperinflationary currency.
52 per diluted share) related to the transition to hyperinflationary accounting in Venezuela as of January 1, 2010.
To make up for this, NIA's President will be featured in an exclusive NIA video later this month explaining in detail the hyperinflationary crisis that is ahead and how NIA members can prosper while the rest of America goes broke.
After years of hyperinflationary budget growth, the acid test for the governor and Legislature now will be to move on the significant restructuring, consolidation and reform needed to hold growth in state spending to levels that are sustainable in the long term.
24, 1994, however, E&P of a foreign corporation that operates in a hyperinflationary currency environment is generally kept in U.