Financial Glossary

Hyperinflation

Definition

Hyperinflation is an extremely rapid and out-of-control increase in prices, typically exceeding 50% per month. It severely devalues currency, disrupts economies, and erodes purchasing power.

Related Services

Relevant to economic consulting, international finance, crisis management, and currency risk advisory.

Problem and Application

Hyperinflation results in currency collapse, savings erosion, and disruption of normal commerce. Businesses operating in hyperinflationary economies require sophisticated hedging strategies, pricing adjustments, and alternative financing methods to survive.

Conclusion

Hyperinflation devastates economies, requiring robust risk management, currency diversification, and sometimes relocation of business operations to maintain viability.