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Glossary Term:

Hyperinflation

A phenomenon in an economy at which the rate of inflation is exponentially accelerating and erodes the real value of the local currency. This has happened in many countries in history, most notably Germany, Hungary, Venezuela, Zimbabwe, and many others. An unstable currency has ripple effects everywhere in the affected area, and leads to mass exodus out of the economy and into more stable currencies – for the ones that are lucky enough to get out.