Investopedia

Continue to Site »

Hyperdeflation

Filed Under » ,
Dictionary Says

Definition of 'Hyperdeflation'

An extremely large and relatively quick level of deflation in an economy. Hyperdeflation occurs when the general price level of goods or services in an economy falls drastically in a short period of time, causing the real value of a currency to actually increase in that time. This increase results in debts being more pronounced as the real value increases and the value of the currency falls.
Investopedia Says

Investopedia explains 'Hyperdeflation'

While there are no official definitions of what price levels must fall to and how quickly for deflation to be defined as hyperdeflation, generally hyperdeflation can lead to a deflationary spiral in which a deflationary environment leads to lower production, lower wages and demand, and thus lower price levels, continuing until an outside force (government for example) steps in.

Articles Of Interest

  1.

    Do Deflationary Shocks Help Or Hurt The Economy?

    Find out how deflationary shocks can both benefit and hurt consumers and businesses.

  2. Curbing The Effects Of Inflation

    Your investments suffer when general price levels rise. Learn how you can control the damage with IPSs.

  3. What You Should Know About Inflation

    Find out how this figure relates to your investment portfolio.

  4. The Dangers Of Deflation

    We look at what life would be like in a deflationary environment, and what you can do to protect your investments.

  5. The Upside Of Deflation

    Deflation has continued to pop up throughout economic history - but is that such a bad thing?

  6. Deflation: A Two-Sided Coin

    Deflation fears are sweeping the U.S. , but the effects of this economic phenomenon are not all bad.

  7. What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.

  8. Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.

  9. Why The Consumer Price Index Is Controversial

    Find out why economists are torn about how to calculate inflation.

  10. Predict Inflation With The Producer Price Index

    Find out how the PPI can be used to gauge the overall health of the economy.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center