Question

Inflation that is out of control is referred to as _____.

Answer 1

Answer:

Hyperinflation

Explanation:

Hyperinflation is an uncontrolled rise in the prices of an economy. Hyperinflation is generally considered when inflation increases by four annual digits, that is, more than 1000%.

When inflation is accentuated and out of control, a situation is reached in which the prices of a country lose their real value. In this way, hyperinflation produces a reduction in wealth and a very significant loss of the purchasing power of the citizens of a country. This inflationary phenomenon can generally be caused by the unbridled creation of money after a very aggressive expansionary monetary policy or when there is a sudden loss of value of the economy. It is a type of inflation so extreme that there may even be price increases of up to one million percent annually.

Answer 2

The term that best describes an inflation wherein it is considered to be out of control is a hyperinflation. By definition, this specific kind of inflation comes to a point wherein the government would then initiate a policy wherein it would print its own money just to settle with its spending.