Analysis of Six Hyperinflation Cases in the World: Comparative Study of Roots, Effects and Consequences

Hyperinflation is the most severe type or stage of inflation in which the official currency and the ability to exchange it with other foreign currencies quickly lose real value. In the history of economic development in the world، especially in the West، several of such cases are observed to occur and all of them happened in the last two or three centuries when paper money became popular. Contrary to coined money، the paper money could be easily and rapidly printed، allowing the government to print new bills without observing the rules and regulations. This increases the liquidity in the society. This paper first discusses six cases of hyperinflation and then analyzes their similar aspects. Finally، it is concluded that the experiences gained from the said hyperinflations more or less confirm the opinion of monetarists and the followers of Quantity Theory Of Money to some extent. Though this study deals with the history، it can be used to know، prevent and fight against the contemporary inflations، including the current inflation rate in Iran whose upward trend has worried many economist and it is possible for it to turn into hyperinflation.