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[[Hyperinflation]] is out of control inflation and has occurred when there is a massive imbalance between the supply and demand and a complete loss of confidence in the [[currency]]. It has occurred when prices are decontrolled by central governments, like in the [[economic collapse]] of the [[USSR]], where inflation reached over 1000% in some areas.<ref>[http://globalis.gvu.unu.edu/indicator.cfm?IndicatorID=152&Year=1995&Country=UA] Inflation Indicators Ukraine</ref>
[[Hyperinflation]] is out of control inflation and has occurred when there is a massive imbalance between the supply and demand and a complete loss of confidence in the [[currency]]. It has occurred when prices are decontrolled by central governments, like in the [[economic collapse]] of the [[USSR]], where inflation reached over 1000% in some areas.<ref>[http://globalis.gvu.unu.edu/indicator.cfm?IndicatorID=152&Year=1995&Country=UA] Inflation Indicators Ukraine</ref>
The worst episodes of hyperinflation historically have been in [[Weimar Germany]] in 1923 (after [[World War I]]), [[Hungary]] after [[World War II]], and [[Zimbabwe]] in the late 2000s.
The worst episodes of hyperinflation historically have been in [[Weimar Germany]] in 1923 (after [[World War I]]), [[Hungary]] and [[China]] after [[World War II]], and [[Zimbabwe]] in the late 2000s.
At the peak of the inflationary cycle during the Weimar Republic, workers were paid twice daily in wheelbarrows. Currency was rubber-stamped with extra zeros because new currency could not be printed fast enough.
At the peak of the inflationary cycle during the Weimar Republic, workers were paid twice daily in wheelbarrows. Currency was rubber-stamped with extra zeros because new currency could not be printed fast enough.
==Political instability==
==Political instability==
In some societies, political decisions control the supply of currency. If a [[fiat currency]] is devalued due to an increase in the total [[money supply]], inflation will result.
In some societies, political decisions control the supply of currency. If a [[fiat currency]] is devalued due to an increase in the total [[money supply]], inflation will result.
<!--Bruce Bartlett wrote:
<!--Bruce Bartlett wrote:
*Inflation is fundamentally a monetary phenomenon. The inflation of the 1970s came about primarily because [[Federal Reserve]] chairman Arthur Burns gunned the [[money supply]] to get [[Richard Nixon]] re-elected in 1972. He was followed by G. William Miller, appointed by [[Jimmy Carter]]. Miller didn’t have a clue about [[monetary policy]] and only made the dismal inflation situation he inherited far worse. [https://www.nationalreview.com/nrof_bartlett/bartlett200406140846.asp]-->
*Inflation is fundamentally a monetary phenomenon. The inflation of the 1970s came about primarily because [[Federal Reserve]] chairman Arthur Burns gunned the [[money supply]] to get [[Richard Nixon]] re-elected in 1972. He was followed by G. William Miller, appointed by [[Jimmy Carter]]. Miller didn’t have a clue about [[monetary policy]] and only made the dismal inflation situation he inherited far worse. [https://www.nationalreview.com/nrof_bartlett/bartlett200406140846.asp]-->