Saturday, 6 October 2012

Hyperinflation - Iran now but would you believe it France once had it too

Currently the Iranian currency is under a lot of pressure, the Rial having recently jumped from 10,000/$ to the current 35,000/$. This is most likely as a result of the external pressure being put on the country as a result of their nuclear ambitions.

However, did you know that France once also experienced 'hyperinflation' albeit a little while back in the days prior to the Franc when the currency was know as the Mandat.

This was way back in 1796 when inflation actually reached 304% per month an equivalent of 4.77% per day. It was calculated that it took only 15 days for a commodity to double in price.

The table on the right, produced by Hanke-Crus shows Hungary leading the table with it only taking 15 hours for the prices to double - frightening - bring out the suitcases just to carry enough cash to buy a croissant.

Fortunately we're not experiencing inflation anywhere near those numbers, with the August number only being an annual rate of 2.12%

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