The dangers of hyper-inflation

Zimbabwe is getting rid of their currency and switching to use the US dollar. Residents of Zimbabwe can exchange their currency at a rate of 175 quadrillion Zimbabwe dollars in exchange for $5 US.

Just to see it in numbers: if you exchange $175,000,000,000,000,000 Zimbabwe dollars, you will get $5 US.

This is what happens when you get hyper inflation. If you have enough in the bank today to buy a house, in a month that same amount might only buy a gallon of milk. It is estimated that in 2008, Zimbabwe’s inflation rate reached over 200 million percent. Wow.

Probably the best business to have had in Zimbabwe was selling wallets.

If you’re in an airport, it might even be worth converting some US currency into Zimbabwe currency. Yes, it will soon be worthless, but a one hundred quadrillion (Zimbabwe) dollar bill seems like a souvenir worth having for a measly $3 US.

Source: Zimbabwe dollars phased out (BBC)

Print Friendly

1 comment for “The dangers of hyper-inflation

  1. H
    June 13, 2015 at 9:43 am

    A Question:

    Would tax-credits for doctors’ charity-care be helpful?

    H.E.Butler III, M.D., F.A.C.S.

Leave a Reply

Your email address will not be published. Required fields are marked *