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Old 09-25-2008, 05:52 PM
 
Location: Hope, AR
1,505 posts, read 2,761,792 times
Reputation: 242

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Does it always mean Weimar Republic/Zimbabwe levels, or can it mean like 25% inflation?
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Old 09-25-2008, 06:14 PM
 
Location: Seattle, WA
209 posts, read 530,873 times
Reputation: 85
Hyperinflation refers to an extreme rate of inflation in which the general price level of goods and services—usually measured by the Consumer Price Index (CPI) rises very rapidly. Prices rise so fast that consumers become convinced they will keep rising and try to buy as much as possible today to beat tomorrow’s expected higher prices. Consumers try to spend their money quickly; producers often hoard their goods because they expect to receive higher prices later. Hyperinflation tends to feed on itself, becoming more and more severe. Hyperinflation can destroy an economy because money ceases to perform its traditional functions as medium of exchange, unit of account and store of value. If hyperinflation persists, people lose confidence in their currency and look for alternative currencies—using more stable currencies issued by other countries. The end result is often monetary collapse and social and political unrest. A very low rate of inflation, on the other hand, is conducive to economic growth.
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Old 09-25-2008, 07:17 PM
 
Location: Hope, AR
1,505 posts, read 2,761,792 times
Reputation: 242
thanks. one more thing to look forward to

Quote:
Originally Posted by BankREO View Post
Hyperinflation refers to an extreme rate of inflation in which the general price level of goods and services—usually measured by the Consumer Price Index (CPI) rises very rapidly. Prices rise so fast that consumers become convinced they will keep rising and try to buy as much as possible today to beat tomorrow’s expected higher prices. Consumers try to spend their money quickly; producers often hoard their goods because they expect to receive higher prices later. Hyperinflation tends to feed on itself, becoming more and more severe. Hyperinflation can destroy an economy because money ceases to perform its traditional functions as medium of exchange, unit of account and store of value. If hyperinflation persists, people lose confidence in their currency and look for alternative currencies—using more stable currencies issued by other countries. The end result is often monetary collapse and social and political unrest. A very low rate of inflation, on the other hand, is conducive to economic growth.
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Old 09-25-2008, 11:09 PM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,473 posts, read 13,440,324 times
Reputation: 6345
http://www.city-data.com/forum/busin...inflation.html
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