Hyperinflation is hard to grasp, harder still to tolerate



Loose change

IN 1946 Gyorgy Faludy, a Hungarian poet, received 300bn pengo for a new edition of his works. The sum would have been worth $ 60bn before the second world war. But after the Nazis departed with Hungary’s gold reserves and the Russians occupied its territory, the country’s currency was not what it was—and becoming even less so. After collecting the money, Faludy rushed to the nearby market and spent it all on a chicken, two litres of cooking oil and a handful of vegetables.

For those not enduring it, hyperinflation can seem mind-bendingly abstract. The numbers are hard to fathom. In Venezuela’s faltering economy, prices rose by 223.1% last month alone, according to Ángel Alvarado, an economist and opposition politician (the government has long ceased publishing official statistics). Each day throngs of Venezuelans rush across the 300m Simón Bolívar bridge joining their country to the economic sanity of Colombia, where they hope to obtain medicines, food…

Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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