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Money described in hyperinflation  as 'hot potato' because hot things are passed to the other person, similarly people pass the money during hyperinflation.

What is hyperinflation?

Hyperinflation refers to the situation in which the level of the inflation is very high in the economy, that is, the rate is extremely high at the particular period of time.

During hyperinflation, individuals lose substantial resources striving to avoid storing paper money. The money during hyperinflation is described as 'hot potato' because resources as being wasted by the people and transferred to another person.

Therefore, it can be concluded that Money is referred regarded to be a "hot potato" in hyperinflation because hot objects are handed to the other person, and similarly, people transmit money during hyperinflation.

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