Economics Inflation Questions
Hyperinflation is an extreme and rapid increase in the general price level of goods and services in an economy. It is characterized by a significant loss in the purchasing power of money, leading to a sharp devaluation of the currency. Hyperinflation typically occurs when there is a massive increase in the money supply, often caused by excessive government spending or a collapse in the confidence of the currency. This phenomenon can have severe economic and social consequences, including a decrease in real wages, a decline in savings, and a breakdown in the functioning of the economy.