When bills cheaper paper, which are made from

• When the bills cheaper paper, which is made of

When money becomes worthless pieces of paper.

Relatively recently, the world has stirred up incredible information about the hyperinflation in Venezuela. The funds are impaired so that people have to carry a whole bag of bills. Plain chicken or the roll of toilet paper in the millions bolivars. History is replete with such cases. One of these is the hyperinflation in Hungary, which happened some time after the collapse of the Austro-Hungarian Empire, when the country gained its own currency.

The Hungarian pengos period of hyperinflation.

The First World War ended with the collapse of several empires, and the next change in the existing world order. In place of the former hegemonic came new, and states that were on top of the world, start all over again. When at the end of the war collapsed Austro-Hungarian Empire, in its place a number of new countries, including Hungary. As expected, the new government immediately set up its own currency - the crown. However, due to the lack of effective, well-functioning economy, the krona quickly got out of control. Like many other countries, Hungary inflation engulfed in the interwar period.

In what has become currency.

In an attempt to remedy the situation the country's leadership has conducted a monetary reform in 1927, introducing a new currency - pengos, which was tied to the gold standard. At that moment varied to Hungarian crown pengos at the rate of 12 500 to 1. In one dollar at the same given 5, 26 pengos. But history did not spare Hungary.

The situation was deplorable.

During the First World War there was a Second World War. Europe, which has become the main theater of hostilities, lay in ruins. Collapsed economy has not contributed to the strengthening of the Hungarian currency. Already in 1944, for 1 dollar gave no 5 and 33 pengos. The Soviet Union, which under the agreement with Hungary subsequently granted the right to issue military currency of the country, trying to correct the situation, but as early as 1946, the government issued the situation out of control, and the currency collapsed at an alarming rate.

Money lost value.

By the fall of 1945 for 1 dollar gave pengos 8200 and the end of the year, already 128 thousand per dollar. In 1946, we tried to re-stabilize the situation by introducing "adopengo" (tax currency). In the beginning, it gave a positive effect, but to stake spring of the same year pengos plunged to 59 billion US $ 1. At that time, the inflation was about 400% per day. Bill 1 billion Hungarian pengos cost only 2.4 US cents.

The cases in the economy was very bad.

End of the Hungarian currency pengos marked the highest inflation in the history of mankind. Money of the country were cheaper paper on which to print them. Until now, the world economy does not know the comparable example of such a collapse of the national currency. By the way, we were still able to beat inflation in the country within a month after such a terrible event. It helped to achieve the desired effect of the introduction of another currency - the forint, which gradually normalized the situation.

just paper, not currency.

It only remains to add that hyperinflation - it is always a terrible event in the life of any country. For a better understanding of the issue, we can not give a few examples from modern history. We are talking about the crisis in Venezuela. Rate of the national currency weakened so that a roll of toilet paper in the country, worth 2.6 million bolivars. Ironically, in a roll of paper is less than the bills that will be required for its purchase.

Why then do buy paper.

It happens like that in our days. An illustrative example - Venezuela. In this country, money for its mass far exceeded selling products for them. This is particularly evident in the example of food acquisition. Locals go to grocery stores with large bags to buy the simplest things. A soap bar in the state is worth 3, 5 million bolivars, which corresponds to the size of the minimum wage. Ordinary citizens can only hope that things will soon change for the better.