Extreme Currency
The first thing that one can observe after a series of very high inflationary periods is, higher denominition notes.
Recently Zimbabwe launched 100 million zimbabwean dollar bills owing to the very high inflation which is hovering around 165000%.
Imagine the situation, where each loaf of bread costs around 16 million zimbabwean dollars. The currency depreciation made the currency trade at around $1 = 200 million zimbabwean dollars.
This lead me to a search for the world's largest denominition bills:
To begin with,
a) The largest denomination banknote ever officially issued for circulation was in 1946 by the Hungarian National Bank for the amount of 100 quintillion pengo, (100,000,000,000,000,000,000, or 10 to the power of 20).
The Post-WWII hyperinflation of Hungary holds the record for the most extreme monthly inflation rate ever — 41,900,000,000,000,000% (4.19 × 1016%) for July, 1946, amounting to prices doubling every fifteen hours!!
b) Largest bank note with zeroes was in Yugoslavia (1993) 500 Billion Dinara
The above figure is of a 500,000,000,000 (500 billion) Yugoslav dinar banknote circa 1993, the largest nominal value ever officially printed in Yugoslavia, the final result of hyperinflation. Yugoslavia suffered 5 × 1015 % inflation between 1 October 1993 and 24 January 1994.
China which is perceived as having one of the most undervalued currencies as of now, had to go through tremendous hyperinflationary periods during late 1940s owing to which their currency was depreciated to order of a million.
The existing high inflations are no where close to the hyperinflation trends.
All the devaluations of currencies are obviously due to the hyperinflationary trends present in those countries. The details of all the hyperinflationary trends can be obtained from http://en.wikipedia.org/wiki/Hyperinflation
I hope the existing turbulent conditions will not lead us to any such situation, which will force people back to nomadic times.
Recently Zimbabwe launched 100 million zimbabwean dollar bills owing to the very high inflation which is hovering around 165000%.
Imagine the situation, where each loaf of bread costs around 16 million zimbabwean dollars. The currency depreciation made the currency trade at around $1 = 200 million zimbabwean dollars.
This lead me to a search for the world's largest denominition bills:
To begin with,
a) The largest denomination banknote ever officially issued for circulation was in 1946 by the Hungarian National Bank for the amount of 100 quintillion pengo, (100,000,000,000,000,000,000, or 10 to the power of 20).
The Post-WWII hyperinflation of Hungary holds the record for the most extreme monthly inflation rate ever — 41,900,000,000,000,000% (4.19 × 1016%) for July, 1946, amounting to prices doubling every fifteen hours!!
b) Largest bank note with zeroes was in Yugoslavia (1993) 500 Billion Dinara
The above figure is of a 500,000,000,000 (500 billion) Yugoslav dinar banknote circa 1993, the largest nominal value ever officially printed in Yugoslavia, the final result of hyperinflation. Yugoslavia suffered 5 × 1015 % inflation between 1 October 1993 and 24 January 1994.
China which is perceived as having one of the most undervalued currencies as of now, had to go through tremendous hyperinflationary periods during late 1940s owing to which their currency was depreciated to order of a million.
The existing high inflations are no where close to the hyperinflation trends.
All the devaluations of currencies are obviously due to the hyperinflationary trends present in those countries. The details of all the hyperinflationary trends can be obtained from http://en.wikipedia.org/wiki/Hyperinflation
I hope the existing turbulent conditions will not lead us to any such situation, which will force people back to nomadic times.
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