Hyperinflation

It is situation when there is such a rapid rise in the general price that it leads to a rapid fall in the value of money.
i.e. Purchasing power of money decrease so much so that people start losing faith in the currency. On the other hand Policy makers may think in term of using an alternate stable currency. In Zimbabwe it is also called “Galloping”. Inflation in the United States during the revolutionary war, In Germany in 1923, and In Bolivia in 1950 is some example of Hyper Inflation. In order to finance such inflation government starts printing a great amount of paper money.


Gross Domestic Product	Stagflation	Inflation	Aggregate Demand
Philips Curve	Hyperinflation	Definition of Macroeconomics

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