Hyperinflation is an economic condition characterized by a period of extremely high and accelerating inflation. It is often caused by a rapid increase in the money supply, which can be caused by a number of factors, including government spending, central bank policy, and supply shocks.
Hyperinflation can have devastating effects on an economy. It can lead to a loss of confidence in the currency, a collapse in the value of assets, and a sharp decline in output and employment. In extreme cases, hyperinflation can even lead to social unrest and political instability.