What Do You Think About Hyperinflation and What Solution do you Profound

in Project HOPE2 months ago

Zimbabwe, the southern African country has been facing a lot of issues in its independence and it has been having a lot of sanction from foreign countries as well as political instability. At a time in Zimbabwe, the live was worse than a lot of African countries with a very high inflation and the currency (Zimbabwean Dollar). The country's currency inflated to a level where the citizen do not believe in their currency anymore, with inflation hitting over 100,000% and prices started to change every minute. The government kept on printing money and the government printed out 100 trillion Zimbabwean dollars. People would stay in the queue to withdraw trillions and quadrillions of currency not worth $1 USD.


credit

People started recieving an annual income that couldn't pay for their daily expenses, vending machines stopped working as it needed too many coins to work. The government didn't stop printing money so as to cover for the government expenses and lifestyle.

Inflation has been something that a lot of analyst and economic expert would have something to say, some say it is part of governance to see that there is inflation but hyperinflation is bad just the same way deflation is bad. COuntries like Venezuela, Zimbabwe, South Sudan, Argentina, Sudan, Iran, Haiti, Liberia, Sierra leone, Angola and so on have been experiencing high inflation and only citizens in this country can tell how the inflation affects them.

I would like to understand what could have caused the hyper inflation, what is the preffered solution to this hyperinflation? Please you can share your thoughts on this and let's discuss.

Sort:  

Though it's been first time I will be hearing about hyperinflation but I guess one thing can be done is government coming up with some policy that will encourage the riding of their currency value

When it comes to government, good people being in power makes the economic control more suitable.

Hello friend, I really understand your point, my current country Venezuela is going through a very similar situation, in this case because of a bad government, they are people who have only cared about their common good and have forgotten about the population, they do not care if the people are hungry or lacking. It is a sad situation and no country has taken the courage to help us. They prefer to ignore the fact that many people are currently dying of malnutrition or violence. I think that a change of government would be a great solution. Greetings!

Bad government will always remain a terrible thing to happen to a nation, these greedy politicians only care about themselves and nothing else.

It's because the more money the government prints out (with no limitation) it dilutes the value. It's kinda like having a pot of thick soup. The more water you put in the pot, for awhile it makes the soup go longer, but we all know that when you put too much water in the pot, the soup loses flavor. In the end, you have nothing but a pot of water and the soup has been so dilluted that you can't even taste it anymore.

Solution:

A) put restrictions on the government as to how much money they can pump into the system

Or...

B) Bitcoin (there is a limitation built into the system)

Thanks for the highlighted points.

in a game i played, raising tax and goods price and lowering government spending will help reduce inflation. That means to reduce money supply in ppl so it's value can rise. But i don't know if that work in real world

Usually a nation just change their currency if hyperinflation already occured. It is in the hand of zimbabwe gov. if they care about their ppl or not

Every decision certainly falls in the hands of the governing power, it is either they have the love of citizens at heart or otherwise.

Hello @ireti
I don't know much about it, the economy is not my area, however, I can say that hyperinflation has a very negative impact on the citizens of countries that suffer such an effect.
But the same does not happen with the politicians who govern, since they do not see their quality of life deteriorate.
Social differences are intensified.

Thanks for your opinion.