Hyperinflation
Definition
Hyperinflation is an extremely rapid and typically uncontrollable increase in the general price level of goods and services within an economy.
Analogy
Imagine you have a magic money tree that produces an unlimited amount of cash. At first, it seems great because you can buy anything you want. But soon, everyone finds out about your money tree, and they start charging higher prices for everything. This makes the value of your money decrease rapidly and causes hyperinflation.
Related terms
Money Supply: The total amount of money available in an economy.
Inflation: A general increase in prices over time, resulting in a decrease in purchasing power.
Deflation: The opposite of inflation; a general decrease in prices over time.
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