what is hyperinflation?mention the factor responsible for this?
Answers
Explanation:
Hyperinflation has two main causes: an increase in the money supply and demand-pull inflation. The former happens when a country's government begins printing money to pay for its spending. As it increases the money supply, prices rise as in regular inflation.
Answer : Hyperinflation is usually caused by an extremely rapid growth in the money supply of an economy. Hyperinflation is when the prices of goods and services rise more than 50 percent a month.
for example - It certainly upset many Germans. It led to the invasion of the Ruhr by the French and Belgium's in 1923 which led to passive resistance and ultimately hyperinflation and the losses suffered by savers and pensioners for example who lost virtually everything and made the Weimar Government more unpopular
By fall 1922, Germany found itself unable to make reparations payments. . Inflation was exacerbated when workers in the Ruhr went on a general strike and the German government printed more money to continue paying for their passive resistance. By November 1923, the US dollar was worth 4,210,500,000,000 German marks.
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