Sunday School: Hyperinflation in Zimbabwe
To continue my series on money, today I will teach you about hyperinflation in Zimbabwe.
Zimbabwe is the most recent example of hyperinflation occurring in a fiat currency system. Inflation there reached the point where prices were doubling every 24 hours.
The government response was to institute price controls, which got prices in line by eliminating supply:
Which is one way to solve the problem.
Next week I will continue the series by explaining the how and why.