hyperinflation

thumb|upright=1.8|100 quintillion (1020) Hungarian pengő|pengő, the largest denomination bill ever issued, Hungary, 1946. 1 sextillion pengő notes were printed but never issued. thumb|upright=1.8|Hyperinflation in Venezuela represented by the time it would take for money to lose 90% of its value (301-day [[rolling average, inverted logarithmic scale)]]

In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies. Effective capital controls and currency substitution ("dollarization") are the orthodox solutions to ending short-term hyperinflation; however, there are significant social and economic costs to these policies. Ineffective implementations of these solutions often exacerbate the situation. Many governments choose to attempt to solve structural issues without resorting to those solutions, with the goal of bringing inflation down slowly while minimizing social costs of further economic shocks; however, this can lead to a prolonged period of high inflation.