In January 2009 its inflation rate was reported as being 6.5 Quindecillion Novemdecillion Percent or
Amazingly, according to this article, the price level in November 2009 fell by -0.1% as compared to the previous month.
How could this be? In less than a year a fall of over 65 x 10^107 % in inflation.
I guess that if the rate in Zimbabwe was among the highest ever (but not the highest - who can tell me where/when that was?) then this reduction must certainly be the fastest.
I've got my ideas about it, but give me your suggestions below and we'll discuss them.
Hungary with their currency called Pengő. The most severe known incident of inflation recorded, between the end of 1945 and July 1946, was peaking at 1.3 × 1016 percent per month (prices double every 15 hours). The hungarian currency was eventually replaced in August 1946 by the Forint(currency).
ReplyDeletebut is it possible for other nations to cause this kinda extreme inflation problem to deteriorate other countries?
So Zimbabwean inflation was about half that - prices doubled "only" every 24 hours.
ReplyDeleteI'm thinking of some examples where economic power has been used to attack another country's economy.
Some have argued that the unrealistic level of reparations given to Germany after WWW1 were made out of revenge and to destroy the German economy. One person with such a view became the German leader.....
I recently watched an excellent movie called the Counterfeiters, based on the true story of a Nazi plan to attack the UK and US economies by making billions of pounds and dollars of fake money, therfore inflating the money supply.
I also suppose that one country could withhold an important product another country needs, which would then cause the price of that product to shoot up, thus affecting the inflation rate (I am thinking about recent examples some of you may have heard of.....)
To some extent, Zimbabwean inflation was caused by developed nations doing this. After a period in which the leader of Zimbabwe forced thousands of white farmers out of the country and took their lands, many countries took 'sanctions' - that is, banned exports into Zimbabwe.
what were the examples of those products that the country was withholding ??
ReplyDeleteAbout the reduction zinmbabwe's inflation.. according to BBC, i think the possible reasons could be due to the lowered costs of food and perhaps the slowed rate of the money supply(lessened amount of Zimbabwean dollar) as the demand of their currency switched to other foreign currency .. is it correct?