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Hyperinflation

Hyperinflation refers to the phenomenon where there is an unlimited increase in the prices of goods and services. Although, hyperinflation rarely occurs in a healthy economic model. In Layman’s terms, hyperinflation is rapid inflation, where prices can jump 50% and more within the same month.

Oftentimes, hyperinflation is also known as ‘permanent inflation.’ Predominantly hyperinflation occurs due to instances. Either a huge rise in money supply or a drastic demand-pull imbalance. The Weimar Germany following WW1 and Venezuela between 2013 to 2018 are prominent examples of Hyperinflation.


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