Business Glossary

economic condition characterized by rapidly rising prices of freely traded goods, and declining purchasing power, threatening economic stability and ability to repay external debt . The term usually is applied when consumer prices are rising at rates in excess of 50% per month, particularly in developing countries. Also called runaway inflation.

inflationary episode in which the currency becomes virtually worthless. The classic example is Germany in the mid 1920s, when it eventually cost billions of marks to mail a letter or buy bread.