'Hyperinflation' is caused by a country's central bank when it reduces liquidity, thereby creating a shortage of money, leading to inflation.

Question

Quizplus · Accepted Answer

Hyperinflation is actually caused by the opposite of reducing liquidity. It occurs when a country's central bank prints too much money, leading to an oversupply of currency and a decrease in its value, which then results in extremely rapid and large price increases, leading to hyperinflation.

'Hyperinflation' Is Caused by a Country's Central Bank When It