Okuzeka
Economics vocabulary · Inflation and Prices

Hyperinflation

Meaning in economics, with examples

/ˌhaɪpərɪnˈfleɪʃn/nounCommon term

In economics, hyperinflation means: Extremely rapid inflation, often defined as prices rising by more than 50% a month, which quickly destroys the value of a currency.

In Turkish: hiperenflasyon

How it is used

Historic cases include Germany in 1923, Hungary after the Second World War and Zimbabwe in the late 2000s. In such periods people stop using the local currency and switch to foreign money or barter. Avoid using it loosely for ordinary high inflation.

Example sentences

  1. During the hyperinflation of 1923, German banknotes lost value so fast that people spent their wages the same day.

  2. Hyperinflation usually starts when a government prints money to pay for large deficits.

Common collocations

  • a period of hyperinflation
  • spiral into hyperinflation
  • suffer hyperinflation
  • hyperinflation in
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • money supplyThe total amount of money circulating in an economy, including cash and bank deposits, measured with categories such as M1 and M2.
  • devaluationAn official decision by a government or central bank to lower the value of its currency under a fixed or pegged exchange rate.
  • budget deficitThe gap that appears when a government spends more than it collects in taxes and other revenue during a year; it is usually covered by borrowing.

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.