How high can inflation go? Pity the people of Venezuela.

Currently I’m doing a short course at the City Literary Institute on the Weimar Republic of Germany from 1919-1933. A defining feature of that country at that time was the hyper inflation experienced in 1923.

At the start of the crisis in July 1922, one American dollar could be bought for 493 German marks. By the height of the crisis on 20 November 1923, one dollar required 4,200,000,000,000 marks. More information here.

I live in Britain where generally inflation is around 2%, but I was working for the Labour Government of the time when in 1975 inflation hit an historic peak of 25%. More information here.

These days, the country with the worst inflation problem in the world is Venezuela. The International Monetary Fund has just issued a warning that inflation in that country could top 1,000,000% by the end of the year. In 2018, Venezuela’s economy is likely to contract by 18% which would be the third consecutive year of double-digit decline. More information here.


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