What is normally the ultimate cause of hyperinflation?

What will be an ideal response?

The ultimate cause of hyperinflation is usually governments spending more than they collect in taxes, which results in government budget deficits. Governments that can't sell bonds to private investors will often sell them to their central banks. In paying for the bonds, the central bank increases the country's money supply. Excessive increases in the money supply result in hyperinflation.

Economics

You might also like to view...

Deposits held by commercial banks are insured by the:

A) Federal Trade Commission. B) Federal Deposit Insurance Corporation. C) Federal Communications Commission. D) Resolution Trust Corporation.

Economics

On the graph above, output is above planned expenditures at point ________

A) A B) B C) G D) H E) none of the above

Economics