Hyperinflation Example

Narration:
What is hyperinflation?

Today we will learn what hyperinflation is and how to identify it.

Hyperinflation could best be described as inflation on steroids or in hyper drive.

Hyperinflation starts when the country's government begins printing or borrowing money to pay for IT spending.

As the cycle of printing or borrowing money continues goods and services cost more.

Early signs of hyperinflation are when the price of something in the morning costs more in the afternoon.

Hyperinflation occurs when the price of goods and services rise more than fifty percent in a given month.

To keep from paying more in the future, citizens begin hoarding, which in turn creates shortages.

As people hoard toilet paper, perishable goods, such as milk, eggs, bread, and produce, these daily supplies become scarce.

The downward spiral continues causing hyperinflation.

Hyperinflation example: Following World War I, between 1918 and 1924 the German government kept printing money and higher denomination bills.

Even the wheelbarrows and baskets were used to carry money to the market. The lower denomination bills became worthless, being used as wallpaper, as fuel for fire, as clothing, children played with money.

Another more recent example is Venezuela. In 2013, prices rose 41%. By 2018, inflation was at 65,000%.

Wheelbarrows and baskets were used to carry money to the market. Bills became worthless. People began using eggs and other farm grown products as currency. Most people lived in severe poverty.

Today, we learned hyperinflation starts when the country's government begins printing or borrowing money to pay for IT spending.
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