Hyperinflation
Extremely rapid and uncontrolled inflation, typically defined as prices rising more than 50% per month.
What is Hyperinflation?
Hyperinflation is a condition in which prices rise at an extremely rapid, self-reinforcing rate — typically defined as monthly inflation exceeding 50%, though in practice it often far exceeds that threshold. It is caused by a massive increase in the money supply (often through government money-printing to finance deficits), a collapse in confidence in the currency, and a breakdown in normal economic relationships. Hyperinflation destroys savings, makes economic planning impossible, and can precipitate political collapse. Historically, it has been preceded by war, political instability, or external debt crises. The most extreme historical case, Weimar Germany (1923), saw prices roughly doubling every two days.
Example
Zimbabwe experienced hyperinflation beginning around 2007, peaking in November 2008 at an estimated 89.7 sextillion percent per month (Cato Institute estimate). The central bank issued notes denominated in trillions of Zimbabwean dollars. The government eventually abandoned the local currency in 2009, adopting foreign currencies instead.