When most of us think of inflation, we see it as a minor annoyance that has caused prices to rise, slowly, over the 20th century. However, inflation can move much faster than what most in the western world are used to. In fact, inflation can rise so fast that it can literally cripple an economy and bring countries to their knees. To show some of the worst examples of inflation over the past 100 years or so, here is a brief list for you to enjoy and reflect upon.
1.
Zimbabwe
When most people think of bad inflation, Zimbabwe is usually the country that comes to mind. In the 2000s, the country made regular news for the incredible speed in which the country’s currency lost value.
Dating back to 1980, the Zimbabwe Dollar was worth around $1.25 in U.S. Currency. However, the collapse of the economy resulted in rampant inflation. Many consider the reason for the hyperinflation to be Robert Mugabe’s decision to take land from white farmers and give it to black farmers, which caused food production and the revenues from its export, to plummet. In 2004, inflation in the country reached 624 percent, and by 2006 it had risen to 1,730 percent. By June 2007, the inflation in Zimbabwe rose to 11,000 percent year-to-year, to cope with the inflation the Bank of Zimbabwe issued checks valued at 100 Million and 200 Million. Ten days later, more checks were issued for 500 million Zimbabwe Dollars, which equaled $2.5 U.S. Dollars. This continued to the point when checks worth $100 billion were being issued and the estimates of inflation for the country reaching 9 million percent, which effectively made the value of the Zimbabwe currency $688 Billion per $1 U.S. Dollar. Apparently, inflation reached its max by some estimates in November 2008 with a rate of 89,700,000,000,000,000,000,000 percent. Eventually, the currency was abandoned and only foreign currencies were used.
2.
Europe
Europe, while relatively stable now with inflation, went through some very difficult periods with inflation.
Germany had its worth inflation in 1923, following the First World War. In 1922, the highest denomination possible in Germany currency was 50,000 Marks. However, by 1923, denominations of 100,000,000,000,000 Marks were being issued, with the exchange rate of December 1923 being 4,200,000,000,000 Marks to $1 U.S. The inflation rate in the country eventually reached an astounding 3.25 x 106 percent per month, which meant that the prices were doubling every two days. People were literally taking wheelbarrows full of money to buy one loaf of bread.
Following the Second World War, Hungary went through its worst inflation from 1945 to July of 1946. In 1944, the highest denomination of the Pengo was 1,000. By the end of 1945, the new highest currency was 10,000,000 pengo and by 1946 it was 100,000,000,000,000,000,000 pengo. To help remedy the inflation, two different currencies were issued as inflation was reaching 1.3 x 1,016 percent per month, resulting in the price doubling on things every 15 hours.
Poland suffered through hyperinflation following the fall of the Soviet Union, from 1989 to 1991. In 1989, the highest denomination of the zlotych was 200,000 by 1992 it had reached 2,000,000. By the end of August, 1992, the exchange rate was 19,600 zlotych for every one $1 US.
In the Ukraine, after the Soviet Ruble was replaced with the karbovancts, the highest denomination was 1,000 karbovantsiv. By 1995,the highest denomination was 1,000,000. The exchange rate eventually hit 1,400 per month. Currently, the Ukraine holds the record for the most inflation in one year, set in 1993.
3.
South America
In recent years, South America has gone through some immense inflation as the developing countries ride the roller coaster to becoming developed. Here are some of the worst examples of South American inflation.
Argentina went through its worst inflation from 1975 to 1991. In 1975, the highest denomination was 1,000 peso, but by 1976 that rose to 5,000. Three years later it was 10,000 pesos and by 1981 it was 1,000,000 pesos. Currency reform resulted in the new 1 Peso Argentino being worth 10,000 pesos in 1985. By 1992, once the economic crisis passed, 1 1992 Peso was worth 100,000,000,000 pre-1983 pesos.
Bolivia went through its worst inflation in the 1980s, from 1984 to 1986, with the highest denomination being 1,000 pesos bolivianos in 1984. By the end of 1985, the highest denomination was 10,000,000 pesos bolivianos. This put the value of the currency at 1,000,000 pesos for every 55 cents in American currency.
Brazil experienced the worst inflation in its history from 1986 to 1994 when inflation rose dramatically. Total inflation in the country reached a high of 2,075.8 percent by the end of the crisis.
4.
Asia
China has had examples of hyperinflation dating back before the 20th century, but the Republic of China experienced its worst inflation between 1948 and 1949. In 1947, the highest denomination was 50,000 Yuan, but by the middle of 1948 that had risen to 180,000,000 Yuan. Currency reform that year resulted in the gold Yuan replacing the old Yuan, with an exchange rate of 1 gold Yuan equaling 3,000,000 Yuan. However, the end of 1948, a denomination of 10,000,000 gold Yuan was being issued, and bin 1949 introduced the silver Yuan with 1 silver Yuan equaling 500,000,000 gold Yuan.
The Philippines went through its own hyperinflation period when the Japanese occupied it during the Second World War. The Japanese issued its own money, outlawing other currency as guerilla money. The fiat currency issued by the Japanese government became utterly worthless however, and many people would bring suitcases full of money to buy cheap items.
5.
The United States
Even the United States has not been immune to hyperinflation, however the most common examples are from the 17th and 19th centuries, during times of crisis for the country. During the Revolutionary War, Congress issued the Continental Currency, but the currency could be counterfeited very easily and that caused the value of the currency to fall very quickly, making the currency almost worthless.
During the American Civil War, the Confederate States issued their own currency and that caused the Lerner Commodity Price Index for leading cities in the eastern Confederacy to increase from 100 to over 9,000. As the Civil War continued to go on, from 1861 to 1865, the Confederate Dollar became more and more worthless, until just before the end of the war it was literally worthless. Since the South lost the war in 1865, the currency was completely abandoned for the American Dollar once again.
Author: Craig Baird — Copyrighted © roadtickle.com
More from Road Tickle
-
Stewiaba
-
euphoriajoca
