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When inflation is very high, money, is no longer _____ means of exchange

User MBober
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Final answer:

When inflation is very high, money is no longer a reliable means of exchange.

Step-by-step explanation:

High inflation degrades the reliability of money as both a medium of exchange and a store of value. Hyperinflation causes currency to lose value so rapidly that individuals often revert to bartering, or they might adopt a more stable foreign currency.

In extreme cases, such as Zimbabwe during the late 2000s, the government issued currency notes of astronomical denominations like the $100 trillion bill, which soon became nearly worthless. This hyperinflation was caused by excessive printing of money to finance large budget deficits, leading to a situation where there was 'too much money chasing too few goods'.

As a result, money fails to serve as a store of value or a stable medium of exchange, and the local economy can fall into disarray, prompting people to leave jobs or hoard goods, further exacerbating the economic instability.

User Sarayee
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