ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Recent Example of Hyperinflation in the World A decade ago, during a financial crisis, Zimbabwe recorded the second highest incidence of hyperinflation in history – the country’s inflation rate for November 2008 was a staggering 79, 600, 000, 000% (essentially a daily inflation rate of 98%).

Detailed explanation-2: -At the end of 2021, Venezuela had the highest inflation rate in the world, at 1, 588 percent change compared to the previous year. This is the ninth consecutive year where inflation in Venezuela was the highest in the world, although it is much lower than its 2018 figure of 65, 374 percent.

Detailed explanation-3: -The Reserve Bank of Zimbabwe blamed the hyperinflation on economic sanctions imposed by the United States of America, the IMF, and the European Union. These sanctions affected the government of Zimbabwe, asset freezes and visa denials targeted at 200 specific Zimbabweans closely tied to the Mugabe regime.

Detailed explanation-4: -Exchange, Prices, and Production in Hyperinflation Germany, 1920-1923.