Hyperinflation is an economic term used when a country’s inflation rate is very high, is accelerating and is out of control. This type of inflation exceeds 50% per month. This is mainly brought on by a rapid increase in the supply of paper money and a corresponding increase in the cost of goods. A recent example of hyperinflation is Zimbabwe where prices almost doubled every day, meaning products and services would cost twice as much the following day. Hyperinflation is typically brought on by wars or their aftermaths, sociopolitical upheavel, a crisis that makes it difficult for the government to collect taxes, and most importantly government budget deficits being financed by currency creation. Abandoning gold or silver coins in favor of paper money is a necessary condition to create hyperinflation. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
