Ten years ago, Zimbabwe stopped printing its own money because it had lost its value. Since the Zimbabwe dollar was not worth much, people carried wheelbarrows of money to buy a loaf of bread. Now, for the first time since 2009, Zimbabwe is printing its own money again.
Inflation is seen in all countries – this is when prices rise over time. For example, a candy bar is costs more today than it did 50 years ago. Because inflation happens over such a long time, people can get used to it. However, Zimbabwe was suffering from hyperinflation, a faster, out-of-control version of inflation. Money lost value so fast, prices doubled or even tripled in a day.
The New Zimbabwe Dollar
People have been lining up outside of banks to get the new money. It may not be good for Zimbabwe’s economy to introduce the new currency. Experts are warning the new money will raise prices on goods (things) in the country. On the other hand, John Mangudya, head of the country’s central bank, says there is nothing to worry about.
Over the last ten years, people in Zimbabwe have used money from other countries and currency that could be traded on cell phones. This past summer, the central bank made it illegal to use money from other countries.
Future of the U.S.?
A lot of people are concerned the U.S. will experience hyperinflation one day. Zimbabwe in a currency crisis, created from failed central bank ideas. Is this the future for today’s kids?