Have you noticed that the value of your local currency do not have the power to purchase what it could purchase in the past? In my country, the amount we could use to purchase a house in past isn’t enough to purchase one currently and this goes on like that. The truth is inflation is always constant but one greater disaster is hyperinflation. With hyperinflation, the money of a country gradually falls and loses value completely and at this point, the government starts to print trillions of the currency just to pay for simple things like pen. In countries like Venezuela and Zimbabwe, inflation is on the hyper side and at this point, the country becomes very much of a joke and its economy isn’t taking seriously anymore.
When a countries currency starts to have so many zeros, it shows that the country is going to its resting place and the currency of that country becomes useless. This occurs as a result of a government printing out excessive money to cover up the down economic side of a country but instead of the country to get better, the country went to almost bankruptcy.
This year, the economy of several countries plummeted and the government needed to come into action by bailing out the citizens and organizations so the economy keeps functioning properly. Countries like Singapore, The United States, and so on. A lot of countries have printed out almost 20% of their circulating funds into the economy and the United States is one of them.
It is not like the money just starts to lose value all of a sudden, with inflation, there is a rise in the price of goods as well as services in a particular country. With hyperinflation, the price of goods could go high up to 50% monthly.
What do you think will happen with this stimulus checks shared among citizens and businesses, will there been hyperinflation? And what do you think can be done to solve hyperinflation?
