When you think of hyperinflation countries like post-war Germany and Zimbabwe come to mind. However Bolivia in the 1980’s seems to have been a forgotten example. Below is a very good video about the hyperinflation in Bolivia from the PBS Commanding Heights series. I use it teaching the impact of hyperinflation on an economy and policies that to try and control its impact. Some of the main issues from the video are:
- Inflation reached 23,500%
- 7 out of 10 Bolivians live in poverty – the poor get hurt by inflation
- Inflation averaged 1% every 10 minutes
- One of the causes of the inflation was government finances – they just printed money and didn’t collect taxes
- How do you stop a hyperinflation or an inflation? Gradualist steps don’t work and as Jeff Sachs said: “All this gradualist stuff just doesn’t work. When it really gets out of control you’ve got to…
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Utopia, you are standing in it! 
Jun 19, 2017 @ 21:27:26
I cannot bolivia that
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Jun 19, 2017 @ 21:49:03
When hyperinflation requires daily payment of wages etc such as in Germany, I wonder why people even bother with money.
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