What were the causes of hyper inflation?

-history....answer pls help guys.........WHERE?!?!



judging by other question, do you mean Germany in the 1920's?



basically, France and Belgium invaded the Ruhr Valley, Germany's industrial heartland to extract their own raw materials because Germany had fallen behind on the reparations of the Treaty of Versailles (6.6 Billion Marks)



SO the Germany government told the workers to offer 'passive resistance' meaning, they don't fight, just not work.



These guys needed paying, and Germany was getting as much money as it could to pay the reparations. So they started to print off money, which - as you know, reduces the value of their currency (The Mark at this time). They printed off millions to pay workers, and inflation took place, because so much money was flooded into the market.



By November 1923 (I think) 1 US $ = like 100 Billion German Marks - joke eh?
Specify the country....



In economics, hyperinflation is inflation that is very high or "out of control". While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly as the functional or internal currency, as opposed to a foreign currency, loses its real value very quickly, normally at an accelerating rate. Definitions used vary from one provided by the International Accounting Standards Board, which describes it as "a cumulative inflation rate over three years approaching 100% (26% per annum compounded for three years in a row)", to Cagan's (1956) "inflation exceeding 50% a month." As a rule of thumb, normal monthly and annual low inflation and deflation are reported per month, while under hyperinflation the general price level could rise by 5 or 10% or even much more every day.

A vicious circle is created in which more and more inflation is created with each iteration of the ever increasing money printing cycle.

Hyperinflation becomes visible when there is an unchecked increase in the money supply (see hyperinflation in Zimbabwe) usually accompanied by a widespread unwillingness on the part of the local population to hold the hyperinflationary money for more than the time needed to trade it for something non-monetary to avoid further loss of real value. Hyperinflation is often associated with wars (or their aftermath), currency meltdowns, political or social upheavals, or aggressive bidding on currency exchanges.
Printing too much money. I know of no other way hyper inflation can happen. Look at Germany about 1925. Look at Zimbabwe today. Money backed by gold or better yet just gold can never have this problem unless some vast amount of gold is found that can be mined very cheaply.

Today gold miners are quite happy to dig up and process a ton of rock if they can get 0.1 OZ of gold.
printing too much paper money with nothing to back it up.