Live revision! Join us for our free exam revision livestreams Watch now



Hyper-inflation is a phase of extremely rapid inflation nearly always the result of mass money printing by the government with money as an asset ending up as worthless. It is also associated with economies where there has been a collapse in real output / supply.

With periods of hyperinflation, people lose all confidence in money and try to spend as soon as they receive. Barter may take the place of cash as a preferred medium of exchange.

Here are some examples of countries that have experienced hyperinflation in the past:

  1. Zimbabwe: Zimbabwe experienced hyperinflation in the 2000s, with inflation reaching a peak of 79.6 billion percent in 2008. The hyperinflation was caused by a combination of economic mismanagement, political instability, and the printing of money to finance government spending.
  2. Germany: Germany experienced hyperinflation in the 1920s, with inflation reaching a peak of 3.25 x 10^29 percent per month in 1923. The hyperinflation was caused by the German government printing money to finance the costs of World War I and the rebuilding of the economy after the war.
  3. Hungary: Hungary experienced hyperinflation in the 1940s, with inflation reaching a peak of 41.9 quadrillion percent per month in 1946. The hyperinflation was caused by the destruction of the country's infrastructure during World War II, as well as economic mismanagement and political instability.
  4. Yugoslavia: Yugoslavia experienced hyperinflation in the 1990s, with inflation reaching a peak of 313 million percent in 1994. The hyperinflation was caused by economic mismanagement and the breakup of the country, which led to a lack of economic stability.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.