Question

Hyperinflation can occur when what happens?

Answer 1

When associated with depressions, hyperinflation often occurs while 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

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It is a situation when there is very high price rise. It occurred in Germany after the First World War due to too much printing of currency.