High money supply growth is generally the cause of hyperinflation.

Question

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When the money supply in an economy grows at a very high rate, it can cause excessive demand for goods and services, which drives up their prices. This phenomenon is known as inflation. If the money supply growth is unchecked and outpaces the growth of real economic output, it can lead to hyperinflation, which is a situation where the general price level increases at an extremely fast rate, often exceeding 50% per month. Hyperinflation can be very destructive and disrupts economic activity, as people lose confidence in the currency, and there is a severe shortage of goods and services. Therefore, managing the money supply growth is an essential part of monetary policy in most countries.

High Money Supply Growth Is Generally the Cause of Hyperinflation