You may not like the situation that befalls your country upon inflation. Once your country’s money printing entity supplies a massive and rapid amount of money, it leads to hyperinflation. The condition is not supported by the growing output of goods and services. What results from oversupply of money by the entity is an imbalance between demand and supply for currency and bank deposits (money in particular) and completely losing confident in this money by the people, a situation similar to a bank run.
Following this is the process of enacting legal laws for tender and applied price controls so as to avoid discounted value of paper money in relation to hard currency, gold, silver or commodities failing the acceptance of paper money with a lack of intrinsic value. Continued supply of excessively printed currency leads t
o increased hyperinflation.
Zimbambwe’s currency printer does not manage the physical printing of paper currency 
at a faster rate than its devaluing rate. As a result, it neutralizes attempts to the stimulation of economic growth. This condition is quite evident from the country’s new $750,000 bearer cheque. You will wonder that Zimbambwe’s highest note value will not buy a single loaf of bread. Imagine that you have walked into a USA shop and purchase a loaf of bread at US$100, or you walk into Manchester city, UK and find the cost of one loaf of bread being 50 pounds. I know you will opt for another alternative. This decimation is what has befallen Zimbabwe, and the country’s citizens have agonized through inflation to what economists call as hyperinflation.
Existence of irresponsible personnel in the Zimbambwe monetary authority has led to unnecessary borrowing of money to repay all the country’s expenditure and fund quasi-fiscal operations, where the Central government provides the chief decisions. Neoliberalism considers hyperinflation to result from a confidence crisis. The nation’s financial base changes thereby providing fear that people are unable to change the local currency to easily transported form; that is hard currency with international recognition or gold.
A neoclassical theory on economic growth presents hyperinflation as being rooted in a deteriorated financial base, a faith that a store of value exists and which the currency will have command at a later period. A dramatic rise of perceived risk behind holding of currency increases the sellers’ market on high premiums in accepting the currency. Consequently, a greater fear results amongst people 
that the collapsing of the currency will result leading to higher premiums. This operation is similar to trade involving cash without any possible economic activity. Several hundred percent in every month is now evident in Zimbambwe.
Recovery of most economies faced with inflation has proved to be an uphill task. Experts considers a small margin of inflation to positively affect the economy. Renegotiation of some prices is difficult especial wages downwardly and as such, for increasing prices adjusting the relative prices becomes simple. Deflation can also result from the efforts to attain a completely stable price. The situation is a negative effect as it involves the downward adjustment of wages and its associated output. Since modest inflation will have goods’ prices increase, an inherent advantage is seen with purchases made sooner than later. By so doing, the economy achieves an active state in a short-term time by encouraging borrowing and spending and in the – time through investments.
Origin:
http://www.finance-money-economy.com/what-is-hyperinflation-...