With the rise of the internet, the term “inflation” is often in the public eye. We are all more or less familiar with the term “inflation”. In this issue, I will give you a brief description of how inflation occurs and then destroys the social and economic system by referring to three types of currency. (This issue focuses on hyperinflation, so please feel free to correct me in the comments section if I am wrong.)
The first currency: Zimbabwean currency. (I want to explain here that Zimbabwe is not as unbearable as people imagined. Zimbabwe’s industry is still relatively developed in Africa, and Zimbabwe’s current “expansion” has also stabilized (doesn’t mean there is no).
Zimbabwe is a country that we are all familiar with, and its strong inflation has made it notorious worldwide. But the reason is not Zimbabwe’s “crazy” money printing. There may be many reasons for Zimbabwe’s inflation.
For example, Zimbabwe has a long history of economic sanctions as a result of a major disagreement with countries such as Britain and the United States over human rights, and its agriculture is less developed than its industry, with frequent food shortages. In addition, President Robert Mugabe’s reforms have all failed. The country has also turned to the cryptocurrency “bitcoin” as a “tool” to preserve its value. (Similar currency such as dogecoin can be learnt through Doge mama review). This has led to Zimbabwe’s “inflation rate” going through the roof. Fortunately, the current Zimbabwean government has made peace with the West, but the “inflation” will not go away overnight, so the Zimbabwean government still has work to do.
The second currency: the Russian Rouble
On 25 December 1991, Gorbachev announced his resignation and the edifice of the Soviet Union “collapsed”. Gorbachev handed over state power to Russian President Boris Yeltsin. Yeltsin crushed the Soviet Union. But Yeltsin adopted a “shock therapy” that was not suitable for Russia’s situation (note that it was not suitable, there was nothing wrong with “shock therapy” per se, but because Russia had been a member of the Soviet Union for a long time with a “planned economy”. But because Russia was a member of the Soviet Union and had been developing as a “planned economy” for a long time, it would be very difficult for Russian society to accept a sudden liberalisation and opening up of the Russian economy). The “shock therapy” did not take away the poverty, but rather increased inflation.
The third currency: the Japanese yen
In the 1980s, Japan’s economy grew at a rapid pace. But with this rapid growth came the risk of a collapse due to economic overheating. But Japan’s approach to containment saw the economy simply “blow up”. The Japanese people lost their “hope for life” and the suicide rate in Japan “rose steadily”. The economy was hit hard and for thirty years the economy was in stagnation.
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