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Hyperinflation Causes

oboloo Glossary

Hyperinflation Causes

Hyperinflation causes include the printing of excessive amounts of currency that outpaces real economic growth and puts substantial downward pressure on the value of a country’s currency. Other factors can lead to hyperinflation, such as the debasement of a currency, when the issuing country began using lower-quality metals in its coins or if the central bank excessively expands credit. In terms of its impact, hyperinflation erodes purchasing power, making it difficult for businesses to plan for the future and hinders economic growth by spurring capital flight and reducing investment. The devastating impact of hyperinflation is far-reaching and can lead to instability and civil unrest if not addressed quickly.

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