Question

Wikipedia has a detailed account of hyperinflationary episodes in a number of countries throughout history. Go to the page at https://en.wikipedia.org/wiki/ Hyperinflation#Notable_hyperinflationary_episodes. Which of the countries listed had the worst hyperinflationary episode? Which country has the most recent hyperinflationary episode?

Short answer

had the worst hyperin

Step-by-step solution

Step 1.Definition

Inflation refers to the situation when the general price level in an economy experiences a significant and consistent increase. Rapid and excessive increase in inflation rates is known as hyperinflation. It leads to erosion in the value of cash holdings, sky-rocketing the price of basic items.

Step 2.Explanation

There have been several instances of hyperinflation in different countries, in Austria, between 1914 to 1923, the inflation rate raised to 1,426%. In 1985, Bolivia experienced a 20,000% inflation rate at one time. In the 1980s, Vietnam face an excessive inflation rate with a peak at 774% in 1988. In Zimbabwe, the excessive rise in inflation caused the abandonment of domestic currency.

The worst inflationary pressures have been experienced has been experienced in

• Hungary - daily inflation rate -207%
• Zimbabwe - daily inflation rate - 98%
• Yugoslavia - daily inflation rate - 64.6%

The most recent case of the hyperinflationary episode has been experienced in Venezuela with the inflation rate rising to 65,000% in 2019. By 2020, the inflation slowed down with rates going up to 2000.