HYPERINFLATION
HYPERINFLATION Hyperinflation which means when the inflation rate exceeds more than 50% in the economy is typically caused by the sudden growth of the supply of paper money. Causes of hyperinflation Excessive Money Supply: Hyperinflation often occurs when a government prints or creates an excessive amount of money, either to finance large budget deficits or to cover unsustainable levels of debt. When the money supply grows faster than the production of goods and services, the value of the currency declines rapidly, leading to rising prices. Loss of Confidence in the Currency: Hyperinflation can be triggered or exacerbated by a loss of confidence in the currency by the public and international investors. If people anticipate future inflation, they tend to spend their money quickly, which further drives up prices. Deficit Financing: Governments sometimes finance their spending by borrowi...