Causes of hyperinflation Hyperinflation is mainly caused by an extremely rapid growth in the supply of paper money. This occurs when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. Inflation is , in fact , a form of taxation because

Inflationubukwazi yini? maizviziva here? did you know? Understanding hyperinflation. Inflation can be defined as a general increase in prices and the fall in the purchasing value of money. Hyperinflation is a severe form of inflation, where prices rise constantly and rapidly. The currency of a country loses its value very quickly, normally at an accelerating