Hyperinflation
What is Hyperinflation?
Extremely rapid inflation, often defined as prices rising more than 50% a month.
Understanding Hyperinflation
Hyperinflation usually follows governments financing large deficits by creating money, as in Germany in 1923, Hungary after World War II, and Zimbabwe in the late 2000s.
As confidence collapses, people spend money as fast as they get it, which raises velocity and accelerates inflation further. It typically ends only with a credible new monetary regime.