GO
Loading...

Hyperinflation: CNBC Explains

Although inflation is not necessarily a bad thing for a growing economy, there have been numerous historical examples when inflation runs wild, a situation called hyperinflation. Some of the worst examples of hyperinflation have seen prices double in a matter of hours, with monthly inflation rates exceeding hundreds of trillions of percent. However, monthly inflation reaching 50% is generally considered to be the threshold for hyperinflation. What is hyperinflation, how does it occur and what happens when inflation runs wild? Salman Khan of the Khan Academy explains.

From this video, you’ll understand:

  • The underlying reasons for hyperinflation
  • How countries throughout history have experienced hyperinflation

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Latest Special Reports

  • The clock is ticking its last 2014 tocks, and for stocks, that means it's time for a portfolio review and tuneup.

  • From the birth of a child to college, marriage, and retirement, a successful investment path leads to the good life.

  • With people living longer and saving less, they are finding that retirement and work are no longer mutually exclusive.

Central Banking Explained

Corporate Accounting Explained