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CAUSES OF HYPERINFLATION.
- Lecture notes • 3 pages • 2023
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Hyperinflation, an economic nightmare, is primarily caused by governments excessively printing money, leading to a surplus of currency in circulation. This often occurs due to factors like budget deficits, political instability, loss of confidence in the currency, and economic shocks, triggering a rapid and uncontrollable rise in prices for goods and services. Hyperinflation erodes savings, disrupts daily life, and requires swift and effective economic measures to resolve.
Lecture notes
CAUSES OF HYPERINFLATION.
Last document update:
ago
Hyperinflation, an economic nightmare, is primarily caused by governments excessively printing money, leading to a surplus of currency in circulation. This often occurs due to factors like budget deficits, political instability, loss of confidence in the currency, and economic shocks, triggering a rapid and uncontrollable rise in prices for goods and services. Hyperinflation erodes savings, disrupts daily life, and requires swift and effective economic measures to resolve.
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