Zimbabwe's hyperinflation reached 790 billion percent a month, when a 100 trillion dollar note bought no bus fare

money & economicsWikipedia2007–2008 · Zimbabwe

Zimbabwe's hyperinflation reached 790 billion percent a month, when a 100 trillion dollar note bought no bus fare

the gist

Zimbabwe's economy has been in hyperinflation since February 2007 by Cagan's definition, which counts prices rising at least 50% a month. At the peak in mid-November 2008, monthly inflation was estimated at 790.6 billion percent, and annual inflation at 89.7 sextillion percent. A 100 trillion dollar banknote could not pay for a simple bus fare. The government stopped publishing official inflation statistics during the worst period, so the figures are estimates. In April 2009 Zimbabwe stopped printing its own currency and used foreign currencies instead, and in 2015 it announced a full switch to the US dollar. The country reintroduced a local currency in 2019, and inflation rose again, reaching 737% annually by July 2020.

how it works

When a government finances spending by creating money faster than the economy produces goods, prices rise and each unit of currency buys less. Once people expect further inflation, they spend money immediately and refuse to hold it, which accelerates the spiral. Fixed or controlled prices and loss of trust in the currency can make the process run out of control.

so what

Zimbabwe's case shows how a government that prints money to cover deficits can destroy a currency's purpose as a store of value and medium of exchange. It remains a standard example for economists studying what happens when trust in money collapses.

the bigger pattern

Hyperinflations have occurred in several countries after wars or fiscal collapses, including post-First World War Germany and Hungary after the Second World War. Zimbabwe's episode is one of the most extreme on record.

Hampi was once one of the world's largest cities, until its Vijayanagara capital was destroyed in 1565

the gist

Hampi is a UNESCO World Heritage Site in Karnataka, India, with more than 1,600 surviving remains spread over 4,100 hectares. It was the capital of the Vijayanagara Empire from 1336 to 1565. Travellers from Persia and Portugal described it as a prosperous, wealthy and grand city with temples, markets and farms along the Tungabhadra River. By 1500 it was estimated to be the world's second-largest city after Beijing, and probably India's richest at the time. In 1565 a coalition of Muslim sultanates defeated the Vijayanagara Empire, its capital was conquered and destroyed, and the city was left in ruins. Hampi remains a religious centre, with the active Virupaksha Temple at its heart.

how it works

The city was built around a fortified core with temples, markets and water structures along the river, supplied by an extensive network of roads and waterworks. When the empire fell, the city was not rebuilt, so its stone monuments were left standing.

so what

Hampi shows how quickly a great city can vanish after a military defeat, and how a ruined capital can remain sacred. Its ruins give historians a view of medieval South Asia that few other sites can match.

fun fact

The name Hampi comes from Pampa, an old name for the Tungabhadra River.

From Wikipedia, the free encyclopedia · text CC BY-SA 4.0

Image: Wikimedia Commons

source: Wikipedia ↗

2 min

politicsshortCNA2:01

False allegations about Singapore’s hand in Indonesia’s markets and a made-up meeting

from CNA

CNA Verify has found close to 400 posts pushing falsehoods tying Singapore to Indonesia’s stock market rout and to a secret meeting that never took place. Together, they drew nearly 12 million views, and some were circulated by accounts that appeared to be working in concert, across multiple social media platforms.

Here’s how the disinformation campaign targeting Singapore was uncovered.

on YouTube: CNA ↗