<p>Hyperinflation has great negative impact on the entire economy, as it makes it very difficult for households and businesses to plan long term projects and protect their wealth and earning power, reducing the real growth of the economy. </p>

<p>Inflation increases the nominal yield of investment securities and erodes the value of a currency. You can get more information on inflation effects on investment from this <a href="http://europe.pimco.com/EN/Education/Pages/InflationPrimer.aspx" rel="nofollow noreferrer">PIMCO primer</a>.</p>

CC BY-SA 4.0
2018-05-19T14:33:56.843Z
2018-05-19T14:33:56.843Z
jaamor
<p>Title says it all - how does hyperinflation affect investment and how does this differ from how creeping inflation might affect investment?</p>

<inflation>
How does hyperinflation affect investment?
user18347
# How does hyperinflation affect investment?

(Asked by: username_0 on 2018-05-19)

Title says it all - how does hyperinflation affect investment and how does this differ from how creeping inflation might affect investment?

**Tags:** inflation


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## 1 answers

### Answer by username_1 on 2018-05-19. Score: 0 | Accepted answer

Hyperinflation has great negative impact on the entire economy, as it makes it very difficult for households and businesses to plan long term projects and protect their wealth and earning power, reducing the real growth of the economy.

Inflation increases the nominal yield of investment securities and erodes the value of a currency. You can get more information on inflation effects on investment from this [PIMCO primer](http://europe.pimco.com/EN/Education/Pages/InflationPrimer.aspx).


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