Hyperinflation
Monetary inflation occurring at a very high rate.
Hyperinflation is an extreme and rapid increase in the general price level, typically defined as monthly inflation rates exceeding 50%. It often leads to a complete breakdown of a country's monetary system.
Word relationships
- runaway inflation: A more descriptive, less formal term for hyperinflation.
- galloping inflation: Suggests very high, rapid inflation, often a precursor to hyperinflation.
Commonly confused with
- Inflation: Inflation is a general rise in prices; hyperinflation is an extreme, out-of-control form of inflation where prices rise at an astronomical rate.
Collocations
- runaway hyperinflation
- severe hyperinflation
- hyperinflationary crisis
Example sentences
- "Germany experienced severe hyperinflation in the 1920s, where money became virtually worthless." Historical economic crisis.
- "The country's currency was rendered useless by hyperinflation, forcing citizens to resort to bartering." Describing a modern economic collapse.
- "Economists study historical cases of hyperinflation to understand the dangers of unchecked money printing." Economic theory discussion.
Memory hook
HYPER-inflation is when prices go HYPER, like a hyperactive child, zooming up out of control. Prices go HYPER
When not to use
Do not use 'hyperinflation' to describe high but manageable inflation (e.g., 10-20% annually). It refers to a catastrophic, runaway price increase.
Fun facts
- The highest monthly inflation rate ever recorded was in Hungary in 1946, where prices doubled every 15 hours.
Related words
Explore more words
Monetary Policy, Bubble, Currency, Fiat Money, insolvency, Pegged Rate
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