History, asked by manrajramghariagsp, 1 year ago

who does hyperinflation means

Answers

Answered by wwevikash
2
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. Prices typically remain stable in terms of other currencies.

Unlike low inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase in nominal prices, the nominal cost of goods, and in the supply of money.Typically, however, the general price level rises even more rapidly than the money supply as people try ridding themselves of the devaluing currency as quickly as possible. As this happens, the real stock of money (i.e., the amount of circulating money divided by the price level) decreases considerably.

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Answered by ss3566021
1

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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.

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