The Impacts of Hyperinflaton

The Zimbabwe video that you watched and the articles that you have read covering the hyperinflation in Venezuela both paint a picture of the various impacts resulting from rapid increases in the price level. These impacts are not just economic in nature but they also affect the overall social welfare of a country’s people.

Write a brief paragraph (5-8 sentences) detailing some of the impacts that you observed through reading/watching. You may notice that some of the costs of these periods of hyperinflation are very similar to the costs of standard inflation, just on a much larger, more detrimental scale.

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