hyperinflation

(noun)

In economics, this occurs when a country experiences very high, accelerating, and perceptibly "unstoppable" rates of inflation. In such a condition, the general price level within an economy rapidly increases as the currency quickly loses real value.

Related Terms

Examples of hyperinflation in the following topics:

  • Impact of Inflation on Financial Statement Analysis

    • This type of accounting is used in countries experiencing high inflation or hyperinflation.

  • Chronic Obstructive Pulmonary Disease (COPD)

    • A little of the air of the previous breath remains within the lungs when the next breath is started, resulting in an increase in the volume of air in the lungs, a process called dynamic hyperinflation.
    • Dynamic hyperinflation is closely linked to dyspnea in COPD.
    • It is less comfortable to breathe with hyperinflation because it takes more effort to move the lungs and chest wall when they are already stretched by hyperinflation.
    • On a chest x-ray, the classic signs of COPD are over-expanded lung (hyperinflation), a flattened diaphragm, increased retrosternal airspace, and bullae.
    • Complete pulmonary function tests with measurements of lung volumes and gas transfer may also show hyperinflation and can discriminate between COPD with emphysema and COPD without emphysema.

  • The Functions of Money

    • It can replace money as the method of exchange in times of monetary crisis, such as when a the currency is either unstable (e.g. hyperinflation or deflationary spiral) or simply unavailable for conducting commerce.

  • Forms of Money

    • For instance, countries with high inflation rates or hyperinflation have rapidly growing money supplies.
    • Hyperinflation is a country's inflationrate becomes extremely high, and prices become meaningless.

  • Introduction to IFRS

    • ., Constant Item Purchasing Power Accounting – CIPPA – in terms of a Daily Consumer Price Index or daily rate at all levels of inflation and deflation under the Capital Maintenance in Units of Constant Purchasing Power paradigm and Constant Purchasing Power Accounting – CPPA – during hyperinflation under the Historical Cost paradigm.

  • The Public Debt

    • A typical example of this is provided by Weimar Germany of the 1920s which suffered from hyperinflation due to its government's inability to pay the national debt deriving from the costs of World War I.

  • Arguments For and Against Inflation Targeting Policy Interventions

    • High levels of inflation eat away at savings, increase menu costs and shoe-leather costs, discourage lending, and may create an inflationary spiral that leads to hyperinflation.

  • The Costs of Inflation

  • War Debts and Reparations

    • The Allied occupation of the Ruhr industrial area contributed to the hyperinflation crisis in Germany, partially because of its disabling effect on the German economy.

  • Italy and Germany

    • The government printed money to make the payments and to repay the country's war debt; the resulting hyperinflation led to inflated prices for consumer goods, economic chaos, and food riots.