Question

What is hyperinflation? What were the causes that led germany to this situation?

Answer 1

hyperinflation is very high and typically accelerating inflation. It quickly erodes the real value of the currency, as the prices of most or all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies.

It could be argued that the cause of the hyperinflation of Germany in 1923 was due to both the internal causes such as Germany's government policies and the external causes such as the Treaty of Versailles, demanding Germany to pay reparations.

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.