Question

When there is hyperinflation, what happens with the perception of value of the money people are holding?

Answer 1

When there is hyper inflation in the market the price of the goods rise many folds in a very short time period of time for example in Zimbabwe price of eggs in the market was around millions in local currency, similarly, in post world war 1 Germany the value of the local currency was so low that childrens use to play with currnecy notes and women were using it as burning fuel while cooking.

At the time of hyper inflaiton the percenption of the value of money in the market fall sharply and people switch to barter trade completely abandoning currency.