Hyperinflation is a phenomenon that occurs when a country experiences rapid and out of control inflation. This results in the country's currency becoming almost worthless, leading to a collapse of the economy. In this article, we will explore the causes, effects, and historical examples of hyperinflation.
Causes of Hyperinflation
Money Supply
High Debt Levels
Government Budget Deficits
Decreased Production
Effects of Hyperinflation
Decrease in Purchasing Power
Increase in Poverty Rates
Unemployment
Social Unrest
Historical Examples of Hyperinflation
Germany in the 1920s
Zimbabwe in the 2000s
Venezuela in the 2010s
How to Avoid Hyperinflation
Fiscal Responsibility
Independent Central Banks
Stable Exchange Rates
