Hyperinflation

Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.

When associated with depressions, hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked this causes prices to increase, as the currency loses its value.

When associated with wars, hyperinflation often occurs when there is a loss of confidence in a currency's ability to maintain its value in the aftermath. Because of this, sellers demand a risk premium to accept the currency, and they do this by raising their prices.

One of the most famous examples of hyperinflation occurred in Germany between January 1922 and November 1923. By some estimates, the average price level increased by a factor of 20 billion, doubling every 28 hours.


Investment dictionary. . 2012.

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  • hyperinflation — ● hyperinflation nom féminin Inflation d une extrême intensité. ● hyperinflation (synonymes) nom féminin Inflation d une extrême intensité. Synonymes : inflation galopante hyperinflation [ipɛʀɛ̃flɑsjɔ̃] n. f. ÉTYM. Attesté 1994; de hyper , et… …   Encyclopédie Universelle

  • hyperinflation — n. an unusually rapid rate of monetary inflation, as when prices rise more than 100 per cent per year. Note: A famous example occurred in Germany after the first World War, reaching its peak in the period 1923. When the hyperinflation ended by… …   The Collaborative International Dictionary of English

  • hyperinflation — 1930 in the economic sense, from HYPER (Cf. hyper ) + INFLATION (Cf. inflation). Earlier as a medical term in treatment of lung diseases …   Etymology dictionary

  • hyperinflation — [n] extremely high, rising economic inflation devaluation, overextension, run away inflation, wheelbarrow economics; concept 335 …   New thesaurus

  • hyperinflation — ► NOUN ▪ monetary inflation occurring at a very high rate …   English terms dictionary

  • hyperinflation — [hī΄pər in flā′shən] n. economic inflation that is particularly severe or extensive hyperinflationary adj …   English World dictionary

  • Hyperinflation — Un billet de 100 milliards de milliards de pengő (1020), en 1946 …   Wikipédia en Français

  • Hyperinflation — Certain figures in this article use scientific notation for readability. In economics, hyperinflation is inflation that is out of control , a condition in which prices increase rapidly as a currency loses its value. Formal definitions vary from a …   Wikipedia

  • Hyperinflation — Deutsche Banknoten aus der Zeit der Hyperinflation 1923 Reichsbanknote 5 Milliarden Mark vom …   Deutsch Wikipedia

  • hyperinflation — See: inflation * * * hyperinflation hy‧per‧in‧fla‧tion [ˌhaɪpərɪnˈfleɪʆn] ➔ inflation * * *    Inflation rising at 100 percent or more per year. Hyperinflation can become self fuelling and can ultimately trigger an economic collapse.    ► See… …   Financial and business terms

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