Money Supply and Inflation: Understanding the Connection
Student Worksheet
Economists define hyperinflation as a monthly rate above 50 percent, a threshold the Weimar Republic crossed in 1923 long before Zimbabwe repeated the pattern decades later. Once prices spiral that fast, households rush to spend cash before it loses value, businesses index wages hourly, and barter or foreign currency often replaces money, which is why central banks lean on interest rate hikes well before things reach that point.
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