Sunday 11 September 2011

What is Hyperinflation?


Do you know that What is Hyperinflation? Well, hyperinflation means excessive inflation in very short period of time. Almost all countries across the globe facing the challenge of Inflation.


A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money is inflation.

How prices rise? we all know the law of supply and demand, which briefly, states that when demand is high, prices will rise, and when supply is high, prices will drop.


How purchasing power of money is decline? When the government prints money out of thin air to solve the financial problems of the nation, the purchasing power of the money goes down markedly.

It is the Zimbabwe Hyperinflation in 2009. You can see the 100 Billion Zimbabwe dollar bank note. And you can buy just 3 eggs from it.



Printing money is not the solution of financial problems. Today governments & central banks around the world are printing money out of thin air to solve the financial problems of the nation. But well, this will cause hyperinflation.

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