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Hyperinflation


Hyperinflation in an extreme form of inflation, characterized by extreme price increases in a short period of time. The exact threshold for hyperinflation depends on the context. Hyperinflation occurs most often during times of economic instability where a government rapidly increases the monetary base.

Economies cannot survive sustained periods of hyperinflation. The inflation levels will either return to acceptable levels or, most often, the monetary system will collapse, forcing the issuance of a new currency.