Editing Hyperinflation (section)

===Zimbabwe===
{{Main|Hyperinflation in Zimbabwe}}
[[File:Zimbabwe $100 trillion 2009 Obverse.jpg|right|thumb|The [[Zimbabwean dollar|Z$]]100&nbsp;trillion banknote (Z$10<sup>14</sup>), equal to Z$10<sup>27</sup> (1 [[octillion]]) pre-2006 dollars]]
[[File:Zimbabwe inflation.webp|thumb|Zimbabwe inflation of almost 25,000% in 2007]]

Hyperinflation in Zimbabwe was one of the few instances that resulted in the abandonment of the local currency. At independence in 1980, the [[Zimbabwe dollar]] (ZWD) was worth about US$1.49 (or 67 Zimbabwean cents per U.S. dollar). Afterwards, however, rampant inflation and the collapse of the economy severely devalued the currency. Inflation was relatively steady until the early 1990s when economic disruption caused by failed [[Land reform in Zimbabwe|land reform]] agreements and rampant government corruption resulted in reductions in food production and the decline of foreign investment. Several multinational companies began [[hoarding]] retail goods in warehouses in Zimbabwe and just south of the border, preventing commodities from becoming available on the market.<ref>{{Cite web |url=http://news.bbc.co.uk/2/hi/africa/2077774.stm |date=1 July 2002 |title=Mugabe warns of business take-overs |work=BBC News |access-date=2 August 2018 |archive-url=https://web.archive.org/web/20180802223711/http://news.bbc.co.uk/2/hi/africa/2077774.stm |archive-date=2 August 2018 |url-status=live }}</ref><ref>{{Cite web |url=https://allafrica.com/stories/201709260656.html |title=Zimbabwe: Industry Allays Fears of Shortages |work=allAfrica
|date=26 September 2017 |access-date=2 August 2018 |archive-url=https://web.archive.org/web/20180802223645/https://allafrica.com/stories/201709260656.html |archive-date=2 August 2018 |url-status=live }}</ref><ref>{{Cite web |url=http://www.news24.com/News24/Archive/0,,2-1659_1401988,00.html |title=Zim: More white farms listed |date=14 August 2003|access-date=10 March 2009 |archive-url=https://web.archive.org/web/20090108210236/http://www.news24.com/News24/Archive/0,,2-1659_1401988,00.html |archive-date=8 January 2009 |url-status=dead}}</ref><ref>Greenspan, Alan. ''The Age of Turbulence: Adventures in a New World''. New York: The Penguin Press. 2007. Page 339.</ref> The result was that to pay its expenditures Mugabe's government and [[Gideon Gono]]'s [[Reserve Bank of Zimbabwe|Reserve Bank]] printed more and more notes with higher face values.

Hyperinflation began early in the 21st century, reaching 624% in 2004. It fell back to low triple digits before surging to a new high of 1,730% in 2006. The Reserve Bank of Zimbabwe revalued on 1 August 2006 at a ratio of 1,000 ZWD to each second dollar (ZWN), but year-to-year inflation rose by June 2007 to 11,000% (versus an earlier estimate of 9,000%). Larger denominations were progressively issued in 2008:
# 5 May: banknotes or "bearer cheques" for the value of Z$100&nbsp;million and Z$250&nbsp;million.<ref>{{Cite web |url=http://economictimes.indiatimes.com/Zimbabwe_issues_250_mn_dollar_banknote_to_tackle_price_spiral/articleshow/3015531.cms |title=Zimbabwe issues 250 mn dollar banknote to tackle price spiral |work=The Economic Times |access-date=8 May 2008 |archive-url=https://web.archive.org/web/20090111174158/http://economictimes.indiatimes.com/Zimbabwe_issues_250_mn_dollar_banknote_to_tackle_price_spiral/articleshow/3015531.cms |archive-date=11 January 2009 |url-status=live }}</ref>
# 15 May: new bearer cheques with a value of Z$500&nbsp;million (then equivalent to about US$2.50).<ref>{{Cite web |url=http://news.bbc.co.uk/1/hi/world/africa/7402943.stm |date=15 May 2008 |title=Zimbabwe bank issues $500m note |work=BBC News |access-date=15 May 2008 |archive-url=https://web.archive.org/web/20080519194436/http://news.bbc.co.uk/1/hi/world/africa/7402943.stm |archive-date=19 May 2008 |url-status=live }}</ref>
# 20 May: a new series of notes ("agro cheques") in denominations of Z$5&nbsp;billion, Z$25&nbsp;billion and Z$50&nbsp;billion.
# 21 July: a "[[special agro-cheque]]" for Z$100&nbsp;billion.<ref>{{Cite news |url=https://www.reuters.com/article/idUSL19624102/ |title=Zimbabwe to introduce 100 bln dollar bank note |website=Reuters |date=19 July 2008}}</ref>

Inflation by 16 July officially surged to 2,200,000%<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/business/7509715.stm |work=BBC News |title=Zimbabwe inflation at 2,200,000% |date=16 July 2008 |access-date=26 March 2010 |archive-url=https://web.archive.org/web/20090930035003/http://news.bbc.co.uk/2/hi/business/7509715.stm |archive-date=30 September 2009 |url-status=live }}</ref> with some analysts estimating figures surpassing 9,000,000%.<ref>{{cite web |url=http://www.thezimbabweindependent.com/index.php?option=com_content&view=article&id=20637:inflation-gallops-ahead&catid=28:zimbabwe%20business%20stories&Itemid=59 |title=Inflation gallops ahead: 9000&nbsp;000% |date=26 June 2008|work=The Zimbabwe Independent |access-date=15 October 2012 |archive-url=https://web.archive.org/web/20110809003510/http://www.theindependent.co.zw/?option=com_content&view=article&id=20637:inflation-gallops-ahead&catid=28:zimbabwe%2520business%2520stories&Itemid=59 |archive-date=9 August 2011 |url-status=dead }}</ref> As of 22 July 2008 the value of the Zimbabwe dollar fell to approximately Z$688&nbsp;billion per US$1, or Z$688&nbsp;trillion in pre-August 2006 Zimbabwean dollars.<ref>{{cite web |url=http://www.zimbabweanequities.com/ |title=ZimbabweanEQUITIES |access-date=30 June 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080820125348/http://www.zimbabweanequities.com/ |archive-date=20 August 2008 }}</ref>{{failed verification|reason=Source doesn't cite this figure|date=September 2019}}

{|class="wikitable floatright" style="text-align:center;"
|-
! Date of<br />redenomination !! Currency<br />code !! Value
|-
| 1 August 2006
| ZWN
| style="text-align:right;"|$1,000 ZWD
|-
| 1 August 2008
| ZWR
| style="text-align:right;"|${{10^|10}} ZWN<br />= ${{10^|13}} ZWD
|-
| 2 February 2009
| ZWL
| style="text-align:right;"|${{10^|12}} ZWR<br />= ${{10^|22}} ZWN<br />= ${{10^|25}} ZWD
|}

On 1 August 2008, the Zimbabwe dollar was redenominated at the ratio of {{10^|10}} ZWN to each third dollar (ZWR).<ref>{{cite news |last=Dzirutwe |first=MacDonald |date=9 December 2014 |title=Zimbabwe's Mugabe fires deputy, seven ministers |url=https://af.reuters.com/article/topNews/idAFKBN0JN1JD20141209 |work=Reuters |access-date=10 December 2014 |archive-url=https://web.archive.org/web/20141213220157/http://af.reuters.com/article/topNews/idAFKBN0JN1JD20141209 |archive-date=13 December 2014 |url-status=dead }}</ref> On 19 August 2008, official figures announced for June estimated the inflation over 11,250,000%.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/business/7569894.stm |work=BBC News |title=Zimbabwe inflation rockets higher |date=19 August 2008 |access-date=26 March 2010 |archive-url=https://web.archive.org/web/20100224190511/http://news.bbc.co.uk/2/hi/business/7569894.stm |archive-date=24 February 2010 |url-status=live }}</ref> Zimbabwe's annual inflation was 231,000,000% in July<ref>[https://news.yahoo.com/s/afp/20081009/wl_africa_afp/zimbabweeconomyinflation] {{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref> (prices doubling every 17.3 days). By October 2008 Zimbabwe was mired in hyperinflation with wages falling far behind inflation. In this dysfunctional economy hospitals and schools had chronic staffing problems, because many nurses and teachers could not afford bus fare to work. Most of the capital of Harare was without water because the authorities had stopped paying the bills to buy and transport the treatment chemicals. Desperate for foreign currency to keep the government functioning, Zimbabwe's central bank governor, Gideon Gono, sent runners into the streets with suitcases of Zimbabwean dollars to buy up American dollars and South African rand.<ref>{{cite news|author=Celia W. Dugger|work=The New York Times|title=Life in Zimbabwe: Wait for Useless Money|date=1 October 2008|url=https://www.nytimes.com/2008/10/02/world/africa/02zimbabwe.html |access-date=25 September 2019}}</ref>

For periods after July 2008, no official inflation statistics were released. Prof. Steve H. Hanke overcame the problem by estimating inflation rates after July 2008 and publishing the Hanke Hyperinflation Index for Zimbabwe.<ref>Steve H. Hanke. "[http://www.cato.org/zimbabwe New Hyperinflation Index (HHIZ) Puts Zimbabwe Inflation at 89.7 Sextillion Percent]". Washington, D.C.: Cato Institute. (Retrieved 17 November 2008) {{Webarchive|url=https://web.archive.org/web/20081112062319/http://www.cato.org/zimbabwe |date=12 November 2008 }}</ref> Prof. Hanke's HHIZ measure indicated that the inflation peaked at an annual rate of 89.7 sextillion percent (89,700,000,000,000,000,000,000%, or {{val|8.97e22}}%) in mid-November 2008. The peak monthly rate was 79.6 billion percent, which is equivalent to a 98% daily rate, or around {{gaps|7|base=10|e=108}}% yearly rate. At that rate, prices were doubling every 24.7 hours. Note that many of these figures should be considered mostly theoretical since hyperinflation did not proceed at this rate over a whole year.<ref name="catohanke">Steve H. Hanke and Alex K. F. Kwok. [https://web.archive.org/web/20090820193841/http://www.cato.org/pubs/journal/cj29n2/cj29n2-8.pdf "On the Measurement of Zimbabwe's Hyperinflation"]. ''[[Cato Journal]]'', Vol. 29, No. 2 (Spring/Summer 2009).</ref>

[[File:Zimbabwe dollar notes 1 to 100 trillion 2007 08 Front.jpg|thumb|Selection of 16 original un-circulated Zimbabwe notes ranging in denomination from Z$1 to Z$100&nbsp;trillion. They are all signed by Gideon Gono, the Governor of the Reserve Bank of Zimbabwe, in the period 2007 to 2008, who promises "to pay the bearer on demand".]]
At its November 2008 peak, Zimbabwe's rate of inflation approached, but failed to surpass, Hungary's July 1946 world record.<ref name=catohanke/> On 2 February 2009, the dollar was redenominated for the third time at the ratio of {{10^|12}} ZWR to 1 ZWL, only three weeks after the Z$100&nbsp;trillion banknote was issued on 16 January,<ref>{{Cite web |url=http://www.africasia.com/services/news/newsitem.php?area=africa&item=090116063500.qczog3x4.php |url-status=dead |title=IC Publications |access-date=16 January 2009 |archive-date=19 February 2012 |archive-url=https://web.archive.org/web/20120219230624/http://www.africasia.com/services/news/newsitem.php?area=africa&item=090116063500.qczog3x4.php }}</ref><ref>{{cite news |url=http://news.bbc.co.uk/1/hi/world/africa/7865259.stm |title=Zimbabwe dollar sheds 12 zeros |work=BBC News |date=2 February 2009 |access-date=2 February 2008 |archive-url=https://web.archive.org/web/20090203151639/http://news.bbc.co.uk/1/hi/world/africa/7865259.stm |archive-date=3 February 2009 |url-status=live }}</ref> but hyperinflation waned by then as official inflation rates in USD were announced and foreign transactions were legalised,<ref name=catohanke/> and on 12 April the Zimbabwe dollar was abandoned in favour of using only foreign currencies. The overall impact of hyperinflation was US$1 = Z${{10^|25}}.
* Start and end date: March 2007 – mid November 2008
* Peak month and rate of inflation: mid November 2008, {{val|7.96e10}}%<ref>Hanke, S. H. and Kwok, A. K. F. (2009). "On the Measurement of Zimbabwe's Hyperinflation". ''Cato Journal'', 29 (2): 353–364.</ref>
Ironically, following the abandonment of the ZWR and subsequent use of reserve currencies, banknotes from the hyperinflation period of the old Zimbabwe dollar began attracting international attention as collectors items, having accrued [[Numismatics|numismatic value]], selling for prices many orders of magnitude higher than their old purchasing power.<ref>{{Cite web|date=14 May 2016 |first=Dominic |last=Frisby |title=Zimbabwe's trillion-dollar note: from worthless paper to hot investment|url=http://www.theguardian.com/money/2016/may/14/zimbabwe-trillion-dollar-note-hyerinflation-investment|access-date=27 March 2021|website=The Guardian|language=en}}</ref><ref>{{Cite news|last2=Mutsaka |first2=Farai |first1=Patrick |last1=McGroarty|date=11 May 2011|title=How to Turn 100 Trillion Dollars Into Five and Feel Good About It|language=en-US|work=Wall Street Journal|url=https://online.wsj.com/article/SB10001424052748703730804576314953091790360.html|access-date=27 March 2021|issn=0099-9660}}</ref>