What Causes Hyperinflation in Economies?

Imagine you have a bucket of water. Now imagine someone keeps pouring more water into it, but the bucket has a hole in the bottom. The water level rises fast, but it spills over. Hyperinflation is when prices rise so fast that money loses its value.

Money is like a promise. We trust that a dollar today will buy the same things tomorrow. But if the government prints too much money, that promise breaks.

When prices go up, people rush to buy things before they cost more. This rush makes prices go up even more. It is a cycle that gets faster and faster.

Think of a candy store. If everyone wants the same candy, the store owner raises the price. If everyone brings more money to buy it, the price goes up again. In hyperinflation, this happens every hour.