Hyperinflation in Zimbabwe
Posted by Kevin Elliott on
Hyperinflation is defined as extremely rapid or out of control inflation. There is no exact number, time period, or % increase in currency to define hyperinflation as you can see in the below graph. If there are economical depression then hyperinflation will often occur when the money supply is not supported by the gross domestic product, which leads to a large increase in money. This results in an imbalance in the supply and demand for the money. These prices tend to increase when left unchecked.
One of the most famous cases of inflation was in Germany where the average price level increased by a factor of 20 billion, doubling every 28 hours.
Another very popular and well now hyperinflation was the Zimbabwe currency that started in the late 1990's with one of the greatest currency instabilities in history. One of the main reasons for the hyperinflation was the confiscation of private farms from white landowners, which occurred towards the end of Zimbabwean involvement in the Second Congo War. This continue d for many years and the height of inflation occured from 2008 to 2009. It was difficult to measure Zimbabwe's hyperinflation because the government of Zimbabwe stopped filing official inflation statistics.
Check out the below table to see how Zimbabwe Inflation Rates compared against some other famous hyperinflation in history.
|Country||Month with highest inflation rate||Highest monthly inflation rate||Equivalent daily inflation rate||Time required for prices to double|
|Hungary||July 1946||1.30 x 1016%||195%||15.6 hours|
|Zimbabwe||Mid-November 2008 (latest measurable)||79,600,000,000%||98.0%||24.7 hours|
|Yugoslavia||January 1994||313,000,000%||64.6%||1.4 days|
|Germany||October 1923||29,500%||20.9%||3.7 days|
|Greece||November 1944||11,300%||17.1%||4.5 days|
|China||May 1949||4,210%||13.4%||5.6 days|
Zimbabwe currency has reached as high as 100 trillion dollars and quickly become a very popular collectible. Now you can become a millionaire, billionaire or trillionaire with these collectible dollars and become a part of the the greatest currency hyperinflation in history!