Hyperinflation

powers officially drew out in the late 20th century, these previous colonies were left to handle themselves with little outside help or guidance. This led to violence, chaos, and a rotation of crises across Africa. Particularly in Zimbabwe, where Prime Minister Mugabe gained power in 1980, and eventually the Presidency in 1987, after the end of white rule and continues to rule to this day; a country which has been experiencing a currency crisis for almost the previous two decades. After decades of large government budget deficits and excessive spending, the government believed that they ought to begin printing more money to give themselves more money to spend in the budget. Eventually, this oversaturated the market and led to extreme hyperinflation of the Zimbabwe dollar. However, at the time it seemed that this policy would be the obvious choice to pay off the rising deficits and various debts that were necessary to improve the nation’s economic conditions and to modernize the country’s infrastructure, but then simple economics kicked in and blew the inflation rate to levels unforeseen. I. Mugabe’s Zimbabwe: Land Seizure and Inflation After Mugabe won the Presidency in 1987, he funded massive infrastructure developments, to “try and redress the lack or inexistence of these basic facilities to the majority of Zimbabweans… [which was] welcomed” by the public. This infrastructure project, however, was extremely expensive as there was much work to be done to improve the nation…

Before 1919 Germany was under the power of Kaiser Wilhelm II. Kaiser has all control over the Germany. He always elected the government officials. But World war one changed that all. Germany citizens were always under the impression that they had their power over the world even then empire was falling apart. When the people of their country figured out that they were lied to, they rebelled again the government. There was a drastic change in the change of on Germany’s Government after the…

Source A is written by George Grosz, a left-wing German artist, recalling his experience shopping during the hyperinflation crisis of 1923. It is of value to historian studying hyperinflation as it comes from Grosz himself, it is a first hand experience of a man whom was present the course of the hyperinflation and is therefore in an accurate position to write about the events that took place. He would have also experienced it first hand considering his occupation, this makes the content very…

Saving money; why? According to one of the Tend Principles of Economics, people face trade-off, what this means is that in order to gain something, you must give up something else. Saving money is not the exception to the rule, but certainly, it is something worth to analyze in order to understand the opportunity cost that normal people face when they save money. By comprehending the opportunity cost of saving money, it will be a lot easier to understand why it is important to save money and…

Inflation comes from the latin word inflare, meaning to blow up or inflate. It was first used to describe the increase in the amount of money in 1838. The inflation from January 2016 was 1.37%, which is not good for the US economy. Today, prices of everyday consumer goods are rising while the value of money is going down due to the rapid printing of money from our government. Returning to the gold standard could be the answer to this problem that we are looking for. There are many pros and cons…

not only was the government’s infrastructures becoming weak, but it also began losing its discipline. In an attempt to bring prosperity back to Germany, the government asked the United States for several juicy loans. With such money, almost an instant boom was created. Culture was flourishing back, construction, music, art, every aspect of the German culture was expanding at a rapid pace.(source G1) Unfortunately, people began rioting and became uncivilized. Thanks to the general strike in…

Hyperinflation Inflation has always affected many different economies across the world. With inflation there is a “sustained increase in the aggregate price level.” This means that there is an increase in the price of general goods and services which leads to people being able to buy fewer goods with their money. Inflation is not always bad, as it can be managed by the economy itself or by the help of the government. However, if hyperinflation, very high inflation, is occurring then the economy…

The Dawes Plan stated that the US would loan Germany a substantial amount of money to kick start Germany’s economy and then the Germans would pay back the USA with interest. This plan worked and for a while the German mark was worth more than it had before World War I. Unfortunately, when the great depression hit, the US was no longer able to send money to Germany, holding them farther back from re-industrialization. This frightened the German people because once again the Weimar Government…

In the past few years, Brazil had gotten their hyperinflation under control and it was estimated to be 8% in the future. Brazil was the second largest trading partner with the US and the nation’s economy was going to be the sixth largest in the world by 2015. For Wiley and the automobile industry Brazil’s 3-4% growth rate in the next few years presented a great opportunity given its influence in the Latin American economies. Other advantage and disadvantages of locating its operations in Brazil…

Weimar Germany (hyperinflation of the 1923) After the World War I, Germany faced strong political and financial instability. The German treasury was all empty due to the world war outlay. The government with the inability to raise proper amount of taxes so that the economy blooms up again, the German government started printing money. But it didn’t go as such, the huge amount of money pumping in the economy caused hyperinflation, the prices skyrocketed which made the German currency less…