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Aug 1, 2024

[Answer] 2. As famously seen in Hungary and Zimbabwe, the excessive printing of paper money can trigger what?

Step 1 : Introduction to the question "2. As famously seen in Hungary and Zimbabwe, the excessive printing of paper money can trigger what?"



...1. fiat lockdown 2. bonfire syndrome 3. waterlogging 4. hyperinflation An increase in money without a corresponding increase in productivity often leads to inflation and subsequently, price increases. Hyperinflation is an excessive amount of inflation in a very short amount of time, and can be triggered by printing excessive quantities of money very quickly. The most extreme hyperinflation ever recorded was 41,900,000,000,000,000%, in Hungary from 1945 to 1946, during which prices would double every 15 hours. More recently, Zimbabwe experienced hyperinflation from 2006 to 2008. Zimbabwean dollars were devalued by increasingly large numbers of zeroes, leading them to print $100,000,000,000,000 bills. Ultimately, the Zimbabwean dollar was completely demonetized in favor of the American dollar as Zimbabwe's official currency.




Step 2 : Answer to the question "2. As famously seen in Hungary and Zimbabwe, the excessive printing of paper money can trigger what?"



hyperinflation:


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