What is Hyperinflation? An Inflation Explained Video

Video summary

This video explains hyperinflation and extremely high and rapidly increasing prices and provides historical examples.

Full transcript

What is hyperinflation? When inflation is extremely high and continues to go up and up and up, or, in more economic terms, prices are rising rapidly and generally at an increasing pace, an economy experiences hyperinflation. One common definition of hyperinflation is when inflation is more than 50 percent per month, which is more than 12,000 percent over a year. In some cases, hyperinflation can be so intense that prices double within days. With such extreme inflation, hyperinflation is usually associated with or can cause social upheaval and civil unrest. A famous example of hyperinflation occurred in Germany between World War I and World War II. More recent examples include Venezuela starting in 2017, Zimbabwe in the 2000’s and Yugoslavia in the 1990’s. With the recent increase in inflation, people have questions about types of inflation, trends, and more. Check out the Cleveland Fed Center for Inflation Research to better understand inflation and how it affects you and our economy.