Hyperinflation

Hyperinflation

Hyperinflation is inflation that is very high or "out of control". While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly as the functional or internal currency, as opposed to a foreign currency, loses its real value very quickly, normally at an accelerating rate. Typical example is Zimbabwe which devalues its currency consistently i.e printing more and more money there by pushing its economy in a hyperinflation state where Zimbabwe dollars are no longer preferred by the sellers who prefer south African rand or American dollar.