Hyperinflation is a form of the inflation, in which the price level increases very fast. There is no generally accepted definition, but a common Daumenregel speaks of a hyperinflation starting from a monthly inflation rate of 50%. A hyperinflation an uncontrollable inflation with extremely high monthly rate is simply said. Many hyperinflations end in a currency reform.

Before that 20. Century were rare hyperinflations, since from a certain inflation level to the to precious metals as cash indemnity or to Naturaltausch changed over. The ever further spreading of uncovered money (Fiat money) made hyperinflations possible. Governments are accused of as a cause for hyperinflations, undermined there them for the covering of its expenditures (fulfilment of achievement promises) disproportionately rapidly and highly to be to blame for and thus the confidence into the own currency. Starting from this time the "escape takes place into real values". Itself an intensifying procedure.

While "normal" inflations are usually justified with economic causes, hyperinflations are beyond that nearly always connected with serious vibrations of the national economy due to war, civil war or social paging situations.

Quantity equation

An explanation for rising the price level generally offers the quantity equation of Irving Fisher:

(Transactions) \ cdot (price level) = (money supply) \ cdot (peripheral speed)

This formula is permitted to change over: (Price level) =

The price level thus therefore rises

1. if the money supply rises with equal lasting peripheral speed and equal lasting number of transactions (if thus the central bank e.g. more money in circulation brings)
2. if the peripheral speed rises with equal lasting money supply and equal lasting number of transactions
3. if the number of transactions decreases with equal lasting money supply and equal lasting peripheral speed (e.g. on disturbance of the economic circulation by disasters, if thus suddenly the deliverability away-breaks, but the demand remains)

Chronology

There are different historical episodes of hyperinflations with monthly inflation rates of over 50%. Examples are

Also before that 20. Century gave it heavy inflations:

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