Description The German Hyperinflation of 1922 The most famous episode of hyperinflation occurred in Germany from August 1922 to November 1923. Prices more than quadrupled every month. The price for goods was higher in the evening than in the morning! Stamps had to be overprinted by the day, and shoppers went out in the morning with bags of money that were worthless by the end of the day. By the time Germany printed 1,000 billion Mark Bank Notes, no one trusted the currency anymore. This hyperinflation was stopped only by a drastic currency and financial system reform. But high inflation is not just a historic artifact. For example, many Latin American countries experienced annual doubling of prices in the early 1980s. The opposite of inflation is deflation (negative inflation), a process in which the price level falls. Though much rarer, it happens. In fact, Business Week reported in November 2002 that an ongoing recession and low demand continued to force an ongoing decline in Japanese prices. Many economists now believe that a modest inflation rate between 1% and 3% per year is a healthy number. 1. Do a little research on inflation and discuss what is happening now? 2. Do you think the government should help? 3. What could they do? Should organizations focus on inflation? 4. Does inflation impact investments? Explain your answers