4 instances of hyperinflation apart from the one induced by COVID-19

Wars, epidemics or pandemics, political upheaval, social revolution and even government mismanagement, all have led to the worst cases of hyperinflation throughout history. The most recent trigger behind this phenomenon is the COVID-19 pandemic. But not many of us know what hyperinflation really is. Let us take a closer look at it. 

What is hyperinflation? 
In the year 1956, an American economist named Phillip Cagan came forward and defined the term hyperinflation as an economic phenomenon during which price rises uncontrollably. The rate of increase is much faster than normal inflation, at times even scaling up by more than 50 per cent a month. However, in simple terms, hyperinflation is a very high rate of inflation during which the general cost of living goes up so rapidly, that people find it hard to continue surviving. This is in many cases, has led to famines, poverty and unemployment, widening the economic gap.  

Hyperinflation across the globe 
Here are few instances of hyperinflation that went down in history as worst case scenarios. 

Greece, May 1941-December 1945: The hyperinflation in Greece during May 1941 and December 1945 was due to the ongoing World War II in which Greece was invaded by the Axis powers in late 1940. The economic crisis occurred because besides being invaded by foreign powers, Greece also had to support its own people apart from 400,000 Axis soldiers stationed across the country. In 1944, the prices had doubled every 4.3 days, and it hit the worst in October when the hyperinflation rate reached a whooping 13800 percent.  

Yugoslavia, early 1990s: From April 1992 to January 1994, Yugoslavia experienced hyperinflation due to many factors like economic crisis, that led to regional conflicts and government mismanagement. It was further worsened by trade embargo enforced by the United Nations in May 1992 and April 1993. During this period, prices often doubled every 1.4 days, with monthly hyperinflation rates reaching an unbelievable 313 million percent. 

China, October 1947-May 1949: Once the World War II was over, China experienced a worst case of civil war. The Nationalists and the Communists were fighting for power and had released competing currencies across the country. At one point of time, there were 10 separate currencies hovering around China. Until October 1949, when the People’s Republic of China was officially formed, the country experienced hyperinflation rates of up to 5070 percent rising every 5.3 days.  

Ukraine, January 1992-November 1994: Ukraine became a separate independent country in December 1991 when the Soviet Union was dissolved. However, Ukraine experienced a sudden hyperinflation as it was unable to adjust to the shift into the market economy. Workers started to go on strikes, production level got hit, currencies underwent a jolt, leading to a collapsed economy. At one point of time, the prices doubled every 15 days and the maximum inflation rate reached 285 per cent.