Hyperinflation can be caused by an oversupply of paper currency without a corresponding rise in the production of goods and services. Some people believe the U.S. is headed toward hyperinflation due to past and possible future government stimulus behavior. Experts, in general, do not believe hyperinflation is likely.

Can hyperinflation happen?

Hyperinflation can occur in times of war and economic turmoil in the underlying production economy, in conjunction with a central bank printing an excessive amount of money. Hyperinflation can cause a surge in prices for basic goods—such as food and fuel—as they become scarce.

Has there ever been hyperinflation?

Hungary: August 1945 to July 1946

Hyperinflation is generally seen as a consequence of government ineptitude and fiscal irresponsibility. The hyperinflation of postwar Hungary was apparently engineered by government policymakers as a way to get a war-torn economy back on its feet.