:"Certain figures in this article use
scientific notationfor readability."
economics, hyperinflation is inflation that is "out of control", a condition in which prices increase rapidly as a currencyloses its value. Formal definitions vary from a cumulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month." In informal usage the term is often applied to much lower rates. As a rule of thumb, normal inflation is reported per year, but hyperinflation is often reported for much shorter intervals, often per month.
The definition used by most economists is "an inflationary cycle without any tendency toward equilibrium." A vicious circle is created in which more and more inflation is created with each iteration of the cycle. Although there is a great deal of debate about the root causes of hyperinflation, it becomes visible when there is an unchecked increase in the
money supplyor drastic debasementof coinage, and is often associated with wars (or their aftermath), economic depressions, and political or social upheavals.
In 1956, Phillip Cagan wrote "The Monetary Dynamics of Hyperinflation"Phillip Cagan, "The Monetary Dynamics of Hyperinflation", in Milton Friedman (Editor), "Studies in the Quantity Theory of Money", Chicago: University of Chicago Press (1956).] , generally regarded as the first serious study of hyperinflation and its effects. In it, he defined hyperinflation as a monthly inflation rate of at least 50%. -1 ight)
redenominations often three zeroes are cut from the bills. It can be read from the table that if the (annual) inflation is for example 100%, it takes 3.32 years to produce one more zero on the price tags, or 3 × 3.32 = 9.96 years to produce three zeroes. Thus can one expect a redenomination to take place about 9.96 years after the currency was introduced.
Gold as an investment
Store of value
List of economics topics
* Costantino Bresciani-Turroni, "The Economics of Inflation" (English transl.). Northampton, England: Augustus Kelly Publishers, 1937, on the German 1919-1923 inflation.
* Shun-Hsin Chou, "The Chinese Inflation 1937-1949", New York, Columbia University Press, 1963, Library of Congress Cat. 62-18260.
* Andrew Dickson White, "Fiat Money Inflation in France", Caxton Printers, Idaho, 1969. a popular description of the 1789-1799 inflation.
Murray N. Rothbard, [http://www.mises.org/story/1829 "The Case for the 100 Percent Gold Dollar"] , Ludwig von Mises Institute, Auburn, Alabama, 2005. Free download. Includes section on 1945 Breton Woods system.
* [http://www.sjsu.edu/faculty/watkins/hyper.htm San José State University: Episodes of hyperinflation]
* [http://www.milliondollarbabies.com A Comprehensive Gallery of Hyperinflation Banknotes]
Wikimedia Foundation. 2010.
Look at other dictionaries:
hyperinflation — ● hyperinflation nom féminin Inflation d une extrême intensité. ● hyperinflation (synonymes) nom féminin Inflation d une extrême intensité. Synonymes : inflation galopante hyperinflation [ipɛʀɛ̃flɑsjɔ̃] n. f. ÉTYM. Attesté 1994; de hyper , et… … Encyclopédie Universelle
hyperinflation — n. an unusually rapid rate of monetary inflation, as when prices rise more than 100 per cent per year. Note: A famous example occurred in Germany after the first World War, reaching its peak in the period 1923. When the hyperinflation ended by… … The Collaborative International Dictionary of English
hyperinflation — 1930 in the economic sense, from HYPER (Cf. hyper ) + INFLATION (Cf. inflation). Earlier as a medical term in treatment of lung diseases … Etymology dictionary
hyperinflation — [n] extremely high, rising economic inflation devaluation, overextension, run away inflation, wheelbarrow economics; concept 335 … New thesaurus
hyperinflation — ► NOUN ▪ monetary inflation occurring at a very high rate … English terms dictionary
hyperinflation — [hī΄pər in flā′shən] n. economic inflation that is particularly severe or extensive hyperinflationary adj … English World dictionary
Hyperinflation — Un billet de 100 milliards de milliards de pengő (1020), en 1946 … Wikipédia en Français
Hyperinflation — Deutsche Banknoten aus der Zeit der Hyperinflation 1923 Reichsbanknote 5 Milliarden Mark vom … Deutsch Wikipedia
Hyperinflation — Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless. When associated… … Investment dictionary
hyperinflation — See: inflation * * * hyperinflation hy‧per‧in‧fla‧tion [ˌhaɪpərɪnˈfleɪʆn] ➔ inflation * * * Inflation rising at 100 percent or more per year. Hyperinflation can become self fuelling and can ultimately trigger an economic collapse. ► See… … Financial and business terms