Question

Hyperinflation can occur when

Answer 1

When associated with depressions, hyperinflation often occurswhile there is a significant increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked, this causes prices to increase, as the currency loses its value.

Answer 2

Hyperinflation Is a Man-Made Disaster. Hyperinflation is a macro-economic event that occurs as a result of a steep devaluation of a country's currency that causes its citizens to lose confidence in it. ... Hyperinflation occurs when the inflation rate exceeds 50% for a period of a month.

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