This term refers to the high and non-stop rise that inflation in a country presents, where the prices of products grow uncontrollably, while the value of the currency is constantly devalued and citizens suffer a serious reduction in their monetary assets. It is mandatory for a country to measure the rise in inflation, which in a stable and normal economy must vary annually, however, when suffering from hyperinflation, economists must measure it in shorter periods of time, in the most extreme cases it must be done monthly.
Most economists define it as "an inflationary cycle with no tendency to equilibrium." There is a great debate among these in which it is sought to know the reason why hyperinflation originates, some claim that it is the consequence of the unstoppable increase in the money supply or a strong degradation of the currency, in most cases the The country that is going through this crisis has suffered wars, in the same way, nations that suffer from economic depressions and social or political disorders tend to live in hyperinflation.
At the same time, it is considered that hyperinflation occurs when confidence in the ability of the local currency to maintain its value is lost, which is why buyers come to demand compensation from their government to accept their currency, that is, the creation of a favorable exchange rate. This causes the price index to rise and current inflation maintains its rise, which could cause a collapse in the country's monetary system.
One of the best known cases of this issue is the hyperinflation suffered by Zimbabwe, a country that suffered at the beginning of the 2000s a great economic crisis generated by the confiscation of many agricultural lands by the government and the refusal of the latter to pay the debts it had with the International Monetary Fund. According to data obtained, in 2008 Zimbabwe's annual inflation rate was 89,700 trillion percent, which caused the price of products to increase in an average of 24 hours and prompted the periodic update of the monetary cone, reaching bills of up to 100 billion Zimbabwean dollars. Thanks to this, in 2009, the country made the decision to abandon the printing of the local currency, converting the US dollar and the South African rand into the standard currencies for exchange. Currently the devalued local currency does not circulate in the nation and inflation has decreased.
