Inflation in communist Venezuela this year could top one million percent, the International Monetary Fund (IMF) predicts. This gallery puts the buying power of today’s bolivar into perspective.
A kilogram of meat costs 9,500,000 bolivars, or the equivalent of $1.45.
Hyperinflation destroys purchasing power of money and encourages hoarding of goods, as people and businesses wait for further price increases. When there is a loss of confidence in a currency’s ability to maintain its value, sellers demand a risk premium to accept the currency; they do this by raising their prices.
Russia faced hyperinflation after the collapse of the Soviet Union, while the economic crisis in Zimbabwe made the country ditch its domestic currency in 2009 in favor of the US dollar and other stable currencies.
RELATED ARTICLES
- New York City to Give Illegal Immigrants $10,000 Each for Free
- Pet abandonment cases soar all over the world due to inflation, rising cost of living
- FDA Authorizes more Boosters without any Clinical Trials
- 99% Of Israeli Start-Up Companies Eligible For Tens Of Millions In COVID-19 U.S. Bailout Grants
- Chuck Schumer says America has to send Ukraine $100 Billion Aid or US Troops to fight Russia
Loading ...
