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What is Hyperinflation?
Extremely rapid juncture of inflation which is affected by instant increase in supply of money is known as Hyperinflation. Fiat currency that has unstrained printing is the reason of this inflation. Inflation usually runs on ordinary basis and thus known as ordinary inflation, but suddenly rapid increase from the normal to higher rate is known as Hyperinflation. 9.9% inflation is regarded as the ordinary inflation, but if you go with 10% inflation, then it is known as hyper inflation.
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What are the causes of Hyperinflation?
The various reasons of hyperinflation are as follows-
- Money supply.
- Supply shock.
What are the effects?
The effects are as follows-
- After math.
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Examples of Hyperinflation
Some countries monthly inflammation rate goes up and it can be more than 50 %. These countries are as follow-
- Roman Egypt.
- Soviet Union.
- United States.
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