Sunday, 29 March 2020

5 countries that exaggerate their money

Hyperinflation is a phenomenon specific to liberal economies, which means that the currency in an economy shortly declines due to the excessive price increase.

Among the biggest causes of hyperinflation are countries' implementation of wrong monetary policies, large amounts of money and uncontrolled printing.

Although it is thought that it may be rare in history, the number of countries that have to struggle with hyperinflation is not at all. Here are the countries experiencing hyperinflation:

1. Hungary
The highest inflation seen in history in the first half of 1946 was experienced in Hungary. II. Trying to deal with the Russian occupation after World War II, the country chose to print more money. In Hungary, where the highest monthly inflation reached 13 billion, daily inflation was around 195 percent.

2. Germany
The inflation problem, which coincided with the last periods of the Weimar Republic, had reached the last point in 1923 in Germany. Inflation, which rose to nearly 29,500 percent in 1923, caused prices in the country to double every 3.7 days.

3. Zimbabwe
Zimbabwe, which had to struggle with continuous inflation, had to struggle with the biggest inflation problem in history with the rate of inflation of 79 billion 600 million monthly in 2008. Prices in the country were rapidly doubling every day.

4. Yugoslavia
With a 313 million monthly inflation rate between 1993 and 1995, it went down in history as one of the countries that experienced hyperinflation in the former Yugoslavia. In 1993-1995, the general level of prices in the country doubled every 34 hours.

5. Greece
Struggling with the crisis for the past few years, Greece has seen 13,800 percent of monthly inflation in 1944. Approximately every 5 days, prices were doubling in the country.

In general, the inflation problems and the depreciation of the money since the First World War have created problems in the economies of many countries. I wrote that between 1919 and 1923, hyperinflation in Weimar Germany increased to 29,500% in a few days, and one dollar corresponds to about 4.7 trillion German marks . In fact, if we look at the situation from the German front, it would not be wrong to say that the environment created by hyperinflation has also prepared the ground for Hitler's coming to power. Income distribution imbalance , decrease in saving rates and negative aspects in terms of foreign trade On the other hand, inflation has very serious consequences in countries like in Germany.

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