Inflation is usually regarded as a general rise in the price level and this implies a general reduction in the value of money. After all, if the price level rises, a given amount of money will exchange for fewer goods and services. When inflation causes the price level to rise rapidly, economists refer to this as hyperinflation. No precise figure can be used to distinguish between a relatively high rate of inflation and hyperinflation but there is no doubt that the inflation rates of several hundred per cent per annum which have been experienced by Latin American countries such as Argentina, Brazil and Mexico in recent years are regarded as hyperinflation.
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