عنوان مقاله [English]
Hyperinflation is the most severe type or stage of inflation in which the official currency quickly loses its real value and its ability to exchange with other foreign currencies decreases dramatically. In the history of economic development in the world, especially in the West, several of such cases have been observed and all of them happened in the last two or three centuries when paper money became popular. Contrary to coined money, the paper money could be easily and rapidly printed, allowing the government to print new bills without observing the rules and regulations. This increases the liquidity in the society.
This paper first discusses six cases of hyperinflation and then analyzes their similar aspects. Finally, it is concluded that the experiences gained from the hyperinflations confirm, more or less, the opinion of monetarists and the followers of Quantity Theory of Money to some extent. Though this is a historical study, it can be used to know, prevent and fight against the contemporary inflations, including the current inflation rate in Iran whose upward trend has worried many economists and it is possible to turn into a hyperinflation.