hyperinflation
noun
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Definition of hyperinflation
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Other Words from hyperinflation
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adjective
Examples of hyperinflation in a Sentence
Recent Examples on the Web
With his savings devastated by Venezuela’s hyperinflation, Aranda was only able to scrape together the equivalent of $30 for the journey. — Washington Post, "Venezuelan man makes ‘one-legged’ trek across South America," 19 Aug. 2019 At least four million Venezuelans have fled their country in recent years, forced out by hunger, hyperinflation and deadly political crackdowns. — New York Times, "They Survived Colonization and War. But Venezuela’s Collapse Was Too Much.," 30 July 2019 Despite digital copies of articles costing nothing to duplicate and the cost of producing an article online being lower than in the past, the cost to libraries of licensing access to them has continued to experience hyperinflation. — Mackenzie Smith, The Conversation, "University of California’s showdown with the biggest academic publisher aims to change scholarly publishing for good," 15 July 2019 Since the Great Recession, Santa Clara County’s assessment roll has ballooned more than 50 percent — more than any time since the hyperinflation of the early 1980s. — Emily Deruy, The Mercury News, "Santa Clara, San Mateo county assessment rolls see record growth, Google and Apple play key role," 2 July 2019 Almagro in his visit Friday said countries in the Western Hemisphere should work together to provide relief to the droves of Venezuelans who every day are fleeing hyperinflation and food shortages in their homeland. — Manuel Rueda, Fox News, "OAS chief threatens military force against Venezuela," 15 Sep. 2018 SUBSCRIBE TODAY Falcón has talked about dollarizing the economy and ramping up foreign investment to overcome a deep economic crisis that features hyperinflation and sporadic food and medicine shortages. — Jim Wyss, miamiherald, "Venezuela's Maduro threatens 'armed revolution' ahead of May 20 election | Miami Herald," 3 May 2018 Fears of Weimar-style hyperinflation in some corners proved fertile ground for the pro-gold messages of Paul and others who see salvation in gold. — Gwynn Guilford, Quartz, "The quiet campaign to reinstate the gold standard is getting louder," 3 July 2019 Photographer: Juan Barreto/AFP/Getty Images 2018 Migration Crisis The number of Venezuelans fleeing escalating crime, hyperinflation and food shortages reached 3 million in what became the world’s largest migration crisis in recent years. — Peter Millard, Bloomberg.com, "A Timeline of Venezuela’s Economic Rise and Fall," 16 Feb. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'hyperinflation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for hyperinflation
hyperinflation
nounFinancial Definition of hyperinflation
What It Is
Hyperinflation is a period of extremely high inflation.
How It Works
Imagine if $30,000 -- money that could buy you a car today -- was only enough to buy you dinner tomorrow. You're imagining hyperinflation -- a period of time that the International Monetary Fund defines as "beginning in the month that the rise in prices exceeds 50 percent and as ending the month before the monthly rise in prices drops below that rate and stays far below it for at least a year."
Hyperinflation happens when a country's money supply increases rapidly but its supply of goods and services don't. As you know, increases in demand without corresponding increases in supply creates increased prices for those goods and services. When this happens quickly, hyperinflation occurs.
Armed conflicts that require extraordinary defense spending, general fiscal imbalances or printing currency in order to pay off government debt are all common generators of hyperinflation because they increase money supply without a corresponding increase in goods and services. And the problem can quickly spiral because when sellers begin to believe that prices will keep going up, they keep raising prices. This usually creates crises in the banking industry because deposits dwindle and withdrawals soar. And all of these factors in turn discourage foreign investment in the currency and businesses using that currency.
Recovering from hyperinflation can take years, if not decades, and requires government adjustments to its fiscal policy.
Why It Matters
Hyperinflation reduces the efficiency of the price system and the usefulness of a country's currency as a store of value -- that is, it often leaves a country's currency worthless. The problem is typically confined to developing economies, however, so investors in these economies should consider this additional risk when investing.
Source: Investing Answers
hyperinflation
noun
English Language Learners Definition of hyperinflation
See the full definition for hyperinflation in the English Language Learners Dictionary
hyperinflation
noun
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