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Economic history · The world economy

Hyperinflation

When money stops working

One mechanism, three times, a century apart. What it is like, why it happens, what it takes away, and what it takes to stop one.

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The seven modules

Modules are written to be read in order: each one opens on the question the last one closed with. Start wherever you like.

1 What Hyperinflation Is A wage spent within hours of being paid, and prices that doubled every day. 7 steps · 10 min 2 How Hyperinflation Is Financed It has happened about fifty times, and never once because a machine was switched on. 7 steps · 10 min 3 The Deficits Behind Hyperinflation A war, a bill it could not pay, and a central bank that was doing the spending itself. 7 steps · 10 min 4 Zimbabwe's Land Reform and Venezuela's Oil Every government named an enemy outside, and every one of them kept the financing running. 6 steps · 9 min 5 The Costs of Hyperinflation Savings, contracts, the price itself, and a quarter of the people. 8 steps · 12 min 6 Stabilising a Hyperinflation Three endings, one condition, and only one of them was designed. 8 steps · 12 min 7 Trust in Money After Hyperinflation Prices stop within weeks. The willingness to hold the money is the part that does not. 7 steps · 10 min

Country data from the World Bank (CC BY 4.0) and the UNDP Human Development Report (CC BY 3.0 IGO)
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