Amika, a poor Zimbabwean, goes to a local store with more than twenty billion Zimbabwean dollars in her hand. Instead of being afraid of being robbed, she is more worried about whether she will be able to buy a loaf of bread with the money she has. The day before she could have bought 20 loaves of bread for 10 million dollars, today she would feel lucky if she received one loaf, even if she has much more money than yesterday. It sounds crazy, but it's the fact. "The real news from CNN.com is that the Zimbabwean dollar is now so worthless that 'Zimbabwe's central bank will introduce a $50 billion note,' which is, as you probably surmised, a new record" ( Mogambo). Isn't that scandalous? YES! AND. This happens when governments print more and more money without considering the consequences of their actions. Zimbabwe is just one example. There are a significant number of countries facing the same problem; maybe they are not as bad as Zimbabwe, but it is still a serious issue. So the question is: what caused money to lose its value so dramatically, and also what are the main consequences? The answer is quite simple. The uncontrolled printing of money that has no ties to limited assets of generally accepted value such as gold or silver, and the growing demand for limited assets have led currencies to significantly lose their value. This caused the serious problem of inflation. This inflation problem has spread rapidly to many countries in recent decades. Venezuela, Argentina and Pakistan are well-known examples. It is clear that the main reason behind this inflation problem is the inability of the so-called “fiat” currency (a currency that a government has declared to be legal tender, despite the fact that it has no… paper…. ..Dual Production Figures ."Bureau of Engraving and Printing. Department of the Treasury,” 2012.Web. March 21, 2012. ."FDR strips US of gold standard." History.com. History Channel, 2012. Web.2 Mar 2012."How Currency Enters Circulation."Federal Reserve Bank of New York. WWW.NEWYORKFED.ORG, June 2008. Web. 21 Mar 2012.Hutchinson, Martin, and john Foley is no longer unthinkable" New York Times August 15, 2011, New York Ed.: B2 Web March 12, 2012. Melloan, George "Back to the Gold Standard." American Spectator45.1 (2012): 16-21 Premier Web. February 28, 2012. Mogambo , Guru. “What can you buy with 50 billion Zimbabwe dollars?” Daily Reckoning. Whitelist Daily Reckoning, 15 January 2009. Web 9 March 2012. “Population Reference Bureau. Population Reference Office, 2008. Web. 1 March 2012.
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