Inflation
is hot property today, hyperinflation is even hotter! We think we are
modern, contemporary, smart and ready to deal with anything. We’ve got
that seen-it-all-before, been-there-done-it attitude. But, we are not a
patch on what some countries have been through in the worst cases of
hyperinflation in history. Here’s the top 10 list of worst cases in
history. We’ll start with the worst first…let’s think positive!
Hungary 1946
Inflation
at its peak reached a staggering figure of 13.6 quadrillion % per
month! That’s 13, 600, 000, 000, 000, 000%. The largest denomination
bill was a 100 Quintillion note. Prices ended up doubling every 15 hours
at the time.
Zimbabwe 2008
Prices
doubled here every 24.7 hours in November 2008 and inflation reached
levels of 79 billion-odd %. They eventually stopped using the official
currency and switched to the South African Rand or the $US. A loaf of
bread ended up costing $35 million. This is the most recent case. It was
Mugabe’s land-redistribution program that caused this.
Yugoslavia 1994
In
just the one month of January 1994 inflation rose by 313 million %.
Prices doubled every 34 hours (which is nothing compared to Hungary).
The currency ended up getting revalued 5 times in all between 1993 and
1995, all to no avail. The cause? A recession triggered by overseas
borrowing and an on-going political struggle in the 1980s and the
following decade.
Germany 1923
Adolf
Hitler rose to power as a consequence of hyperinflationary pressure (at
least one of the reasons). Prices doubled every 3.7 days and inflation
stood at 29, 500%. Germany was crippled with the reparation payments
after the Treaty of Versailles and the end of World War I.
Greece 1944
Prices
started rising by 13, 800% in October 1944 and they doubled every 4.3
days. The trouble was the debt incurred by World War II.
Poland 1921
Prices
rose in 1921 by 251 times in comparison with those of 1914. They
doubled every 19.5 days. The Zloty was introduced as the new currency in
1924 in an attempt to start afresh. Inflation stood at 988, 233% in
1924.
Mexico 1982
Mexico had a rate of inflation of 10, 000% in 1982 (due mainly to too much social expenditure).
Brazil 1994
Inflation was 2, 075.8% at its worst in 1994. The Real was adopted in 1994 and it managed to calm inflation down.
Argentina 1981
The highest denomination bill was the one million pesos note. The Peso was revalued three times.
Taiwan 1949
This
was a knock-on effect from China and the Chinese Civil War. The New
Taiwan Dollar was issued in June 1949. The monthly rate of inflation
stood at 399%
Inflation
can be creeping (mild or moderate inflation) or galloping. We can talk
of Hyperinflation and stagflation (inflation and recession). Deflation
is not better. We have so many names for it.
Hyperinflation
means prices doubling in such a short space of time that we can’t keep
up with it all. Hyperinflation comes about at times of trouble, war,
conflict, upheaval, change on unprecedented levels. It comes about
because we still haven’t learnt how to control it. History repeats
itself, we hear people say. Thankfully, it doesn’t repeat itself too
often. Fingers crossed.
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