What is hyperinflation and how is the US economy doing?

Question

I hear many different reports and I am quite confused. I know what inflation is. But what is hyperinflation?

Answer 1

Hyperinflation is defined as when prices are increasing at a rate of over 50% per month. Basically, it means that cash is losing value so quickly that you are unable to keep assets as cash because -- a month from not that bike you wanted will cost $150 instead of $100 -- and a month later it iwll cost $225.

Hyperinflation is generally caused by a massive monetary shock -- a war, government printing a huge amount of money, investors dumping the currency causing it to lose value.

Its really really bad when it happens -- generally destroying an economy and requiring a new currency.

Whatever problems the US has, we are a zillion miles away from hyper inflations.
Current inflation in the US runs 3% per year -- hyper inflation is 50% a month -- so about 12,875% per year. That's a whole lot higher than 3%

Answer 2

Hyperinflation: In Peru, from 1985 to 1990, inflation shot up to 2,200,000%.

Inflation: Your Snickers bar now costs 1 or 2 cents more/less because of inflation.

Answer 3

The US economy is not doing so well. You hear all about how the stock market is going up and low unemployment rate. The real truth is we are in for a long term crash if we don't do something about US's burn rate of cash in Iraq. So to answer your question, US's economy is not doing well.

Hyper inflation is when the cost of goods increases in such a rate, literally goes up within 1 day. Russia experienced this. During lunch time in the 90's, Russian workers were not rushing to get lunch. Instead, they rushed to the bank to cash there checks before there money becomes useless.

Answer 4

Hyperinflation is unchecked spiraling of prices of goods and services. Americans need not worry because they have one of the finest and most efficient central banks in the World. US eocnomy is doing good Chairman Ben Benake is trying for soft landing on all the meassures taken to control inflation.

Answer 5

At this time the US economy doing good, but it is declining, as far as hyper-inflation it is excess price increase in the general market