Economy

Hyperinflation

Definition

Extremely rapid inflation, typically defined as exceeding 50% per month (or ~13,000% annually), causing the currency to lose value so fast that normal economic activity breaks down.

Explanation

Historical cases include Germany (1923), Zimbabwe (2008, peaking at 79.6 billion percent monthly), and Venezuela (2018-2019). Hyperinflation is always caused by governments printing money to finance spending they cannot fund through taxation. It destroys savings, forces barter, and typically ends only through radical monetary reform — new currency, independent central bank, or dollarization.