abstract:In economics, hyperinflation occurs when a country experiences very high and usually accelerating rates of inflation, causing the population to minimize their holdings of money. Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.
Their view is informed by the disastrousexperience with hyper-inflationinGermany in the 1930s and stagflation in industrialcountries in the 1970s and 1980s.
But Mr Duhalde's fate, and Argentina's, is likely to be determined by the government's success or failure in freeing the currency without triggering hyper-inflation.
John Robertson, an economist in Harare, says the country's hyper-inflation is being driven primarily by the government borrowing money to cover recurring costs such as wages and operating expenses.