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 ?
"If we take a combination of taxation and fiscal instruments, then you don't have to have hyper inflation as part of the process of reducing the value of currency."
But real estate has experienced a long period of hyper inflation. Sales were made at the higher values, and assessments in the city soared along with inflated market prices.
Not surprisingly, hyper inflation has set in; in Romania, a kilogram of sugar that cost 20 lei in 1989 now costs 500 lei, and in Warsaw apartments currently range between $15,000 and $80,000.
Too high inflation (hyper inflation) would make our money practically useless.
' On the forex issue, unfavorable monetary policy of the Federal Government led to high-interest rates, devaluation of the Naira and hyper inflation which all combined to increase our production costs.
He said that the PML-N government had inherited hyper inflation and financial indiscipline of the highest degree, inhibiting the working class from living lives of dignity, and turned things around to cut our deficit in half, grow the GDP at a 4.7% per-annum rate, improve our balance of trade, bring inflation down to a ten year low and bring tax collection up to historic levels.
Corruption has increased in all the government departments and the rates for different kinds of services have been increased and the officials are demanding more indicating that there is hyper inflation in the country and their salaries are insufficient.