What is Hyperinflation ?

Hyperinflation

Hyperinflation represents a situation when inflation gets out of control due to its rapid growth. It cannot be defined by numbers. A characteristic of this kind of inflation is that money decreases its value and the prices increase. This situation is usually a result of increase of supplies of money which is not supported by growth of gross domestic product (GDP).
Events that initiate this situation or increase inflation that has already started, are usually wars or other unexpected situations that make public lose their confidence in a certain currency.

Hyperinflation Examples

hyperinflation 1923 - 100 bilionen mark
Hyperinflation in Germany - Hyperinflation in the Weimar Republic between June 1921 and January 1924. During the first half of 1922, the Mark stabilized at about 320 Marks per Dollar and by November 1923, the American dollar was worth 4,210,500,000,000 German marks.

Zimbabwe $100 trillion
Zimbabwe hyperinflation – Hyperinflation in Zimbabwe was a period of currency instability that began in the late 1990s. Zimbabwe’s peak month of inflation is estimated at 79.6 billion percent in mid-November 2008.

Yugoslavia bill Hyperinflation 1993Yugoslavia :
The inflation in the SFR of Yugoslavia was as high as 19,810.2%, at the end of 1993, at the peak of hyperinflation, the National Bank of the FRY issued a bank note of 500 billion dinars with the image of Jovan Jovanovic Zmaj. Prices doubled every 16 hours. During that period, the German mark became an unofficial means of payment. Individuals could only buy two stamps for the salary. The price of cigars was 1.000.000.000 dinars, and in the evening their price would have been twice as high. The statistics showed that a regular envelope in December 1993 cost 3.5 billion dinars. The shops were empty, and for the weed of cucumbers, it was necessary to allocate 2,100, and for two liters of milk or 200 grams of mustard, as much as 500 billion dinars.
This is the highest inflation recorded in Serbia and one of the largest in the history of humanity. Product prices grew very fast even more than 300% in only a few hours, and often a dinar became only a piece of paper. The brand’s course jumped every day. More and more money was printed and new banknotes were more and more zero. If the coffee cost 1.000.000 dinars, in a few hours the price would have jumped up to 2.000.000 dinars.