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.