Economics of hyperinflation

Hyperinflation occurs when a country’s money supply expands rapidly, often due to excessive government debt or loss of confidence in the economy. This surge in money causes prices to skyrocket, diminishing the value of the currency. As a result, people need more money to buy goods, savings lose value, and economic stability breaks down. Basic transactions become chaotic, and productivity declines because businesses and consumers can't plan with volatile prices. To restore stability, governments must implement strong monetary policies, often including currency reforms, to regain trust and control inflation.