| Zimbabwe broke all records in terms of currency | | | | situation should be a lesson for all countries across |
| when they issued a 100 trillion Zimbabwean dollar. | | | | the globe. And the government of Zimbabwe should |
| Prior to that, they already have 10, 20 and 50 trillion | | | | also look back into the post war-era to find solutions |
| notes circulating in the market. However, 100 trillion | | | | in order to save the economy. As of July 2008, |
| Zimbabwean dollars is currently equivalent to $30 | | | | statistics shows that hyperinflation rate is at 231 |
| only. The new denomination can get you up to 4 | | | | million percent. |
| loaves of bread. | | | | Notable hyperinflation episodes in history are as |
| Hyperinflation in Zimbabwe started around year 2000. | | | | follows: |
| From then on, prices grew higher and higher that the | | | | - Germany |
| Zimbabwean dollar (ZWD) seem to have lost its | | | | - After losing in World War 1, Germany experienced |
| value. In July 2008, a bottle of beer costs around | | | | hyperinflation. After financing the war by barrowing |
| $100 billion ZWD. So, the government of Zimbabwe | | | | instead of raising taxes. Those who won during the |
| licensed businesses to sell products in foreign | | | | war imposed heavy reparation payments and the |
| currency which triggered anger from pro-democracy | | | | German government opted to print more money |
| groups in the country saying that it is a violation of | | | | because funds were running out. Prices shot up and |
| human rights because majority of Zimbabweans are | | | | the exchange rate fell enormously. Hyperinflation rate: |
| enveloped by poverty. | | | | 3.25 million percent |
| In economics, hyperinflation is defined as "very high | | | | - Hungary |
| inflation." Economists use that term to describe | | | | - In the 1940's, Hungary went through the worst |
| occasions when the monthly inflation rate is greater | | | | inflation ever recorded where prices at that time |
| than 50 percent. It is said that hyperinflation is caused | | | | double every 15 hours. Some sources said that the |
| by extremely rapid growth in the supply of paper | | | | inflation was started purposely to ruin those in the |
| money which is not supported by the growth output | | | | upper and middle classes. Hyperinflation rate: 4.19 |
| of goods and services. When there is hyperinflation, | | | | quintillion percent. |
| prices increase rapidly while the respective currency | | | | - Yugoslavia |
| loses its value. | | | | - Hyperinflation plagued Yugoslavia in the early 90's |
| History books can tell you as to how and why the | | | | thanks to its Communist Party. They created |
| Zimbabwean dollar devalued. Soon enough, when the | | | | irrational economic policies that resorted to printing |
| currency completely lost its value, locals can start | | | | more money. That plus the break up of Yugoslavia |
| using the cash as wallpaper. If too much money can | | | | pulled down the socialist economy. Hyperinflation rate: |
| cause more damage than relief, why did Robert | | | | 3.13 million percent. |
| Mugabe's administration release the $100 trillion ZWD? | | | | So, have you ever thought about trading the |
| Though the U.S. is far from (way too far) from | | | | Zimbabwean dollar? Think again. |
| sinking into hyperinflation, Zimbabwe's current | | | | |