Zimbabwe hyperinflation
Zimbabwe scored the second highest
inflation rate in the history by 98% in 2008. So how bad was the inflation in Zimbabwe? The toilet paper cost about $400 Zimbabwe
dollar.
I will be listing the monthly inflation
rate
|
Date
|
Monthly Inflation Rate
|
|
5-Jan-07
|
13.70%
|
|
2-Feb-07
|
77.60%
|
|
2-Mar-07
|
76.70%
|
|
5-Apr-07
|
56.20%
|
|
4-May-07
|
-2.15%
|
|
1-Jun-07
|
207.00%
|
|
6-Jul-07
|
60.40%
|
|
3-Aug-07
|
-7.29%
|
|
7-Sep-07
|
70.60%
|
|
5-Oct-07
|
165.00%
|
|
2-Nov-07
|
193.00%
|
|
28-Dec-07
|
61.50%
|
|
25-Jan-08
|
11.80%
|
|
29-Feb-08
|
259.00%
|
|
28-Mar-08
|
115.00%
|
|
25-Apr-08
|
222.00%
|
|
30-May-08
|
498.00%
|
|
26-Jun-08
|
5,250.00%
|
|
4-Jul-08
|
3,740.00%
|
|
11-Jul-08
|
2,080.00%
|
|
18-Jul-08
|
1,030.00%
|
|
25-Jul-08
|
566.00%
|
|
29-Aug-08
|
3,190.00%
|
|
26-Sep-08
|
12,400.00%
|
|
3-Oct-08
|
15,400.00%
|
|
10-Oct-08
|
45,900.00%
|
|
17-Oct-08
|
493,000.00%
|
|
24-Oct-08
|
15,600,000.00%
|
|
31-Oct-08
|
690,000,000.00%
|
|
7-Nov-08
|
15,200,000,000.00%
|
|
14-Nov-08
|
79,600,000,000.00%
|
The cause of Zimbabwe hyperinflation:
The government starts printing trillion
of Zimbabwe dollars when their economy was quite. If a country have high
inflation rate and the government assume that if they print more cash they will
fix the problem. Ones the government
realizes that printing the money will increase the inflation rate why didn’t they
stop printing? They will not be able to pay their expenses and they will enter
a deep depression if they stopped printing their money so they decided to
inflate their way out of the crises.
The solution?
1. To peg their currency
2. Stop all government spending
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