Hyperinflation is runaway inflation with a sense of panic. Often, some external event occurs, such as war, uprising, or a global pandemic. A government will fund its crisis response with debt it can’t reasonably service, and print more money to cover the difference. Prices rise parabolically, which prompts consumers to panic-buy anything that will hold value and thus create massive shortages. Governments print more money to try and counter the effects, and it all becomes a vicious cycle.

During hyperinflation, every day your money goes unspent, you’re losing some of it. Once purchasing power evaporates, it’s gone for good. You’re better off proceeding with major purchases sooner rather than later in hyperinflation because if you don’t, those items will become more unattainable over time.

If you’re fortunate enough to live in a stable economy, it can be hard to envision what this sort of shopping looks like. Expect long lines at ATMs, empty shelves at grocery stores, and an uptick in crime.

If you’re looking at inflation statistics produced by a government agency staffed with political appointees, take them with a grain of salt.

You can easily visualize the difference between today’s CPI algorithm and the one used decades ago at shadowstats.com.

Hyperinflation squeezes entire communities, and desperate people do desperate things. For this reason, hyperinflation has been cited for prompting unrest, mass poverty, and war.