Definition
- Hyperinflation
- Hyperinflation is an outburst of extremely high inflation, usually caused by a government printing money to pay its bills, so money soon becomes nearly worthless.
Example
Can you think of an example of hyperinflation?
Zimbabwe's government printed money to pay its bills. In November 2008 inflation reached 79.6 billion per cent, and in 2009 the country abandoned its currency.
Test yourself
Can you name the three terms, other than inflation itself, for how the price level can behave?