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<p>[QUOTE=&quot;techwriter, post: 7963770, member: 75477&quot;]Talk about inflation and monetary devaluation:&nbsp; Bolivia provides a scary story:</p><p>[ATTACH=full]1380705[/ATTACH] </p><p><br /></p><p>From 50,000 Pesos to 5 Centavos.</p><p><br /></p><p>A bit of history from :</p><p>&quot;Bolivia’s hyperinflation period of April 1984 through September of 1985 (18 months). The primary factor that laid the foundation for this period of Bolivian hyperinflation was that because of the debt crisis external financing became non-existent, and Bolivia was in major need of monetary assistance. This was the trigger that led to the determinants of Bolivian hyperinflation: a depreciating currency and extreme monetary growth.&nbsp; Specifically, in the case of Bolivia they created more money to ‘relieve’ their financial crisis of having large fiscal deficits which led to extreme monetary growth. Simultaneously, their currency depreciated which reduced the purchasing power of the Bolivian peso and caused inflationary pressures (11). Specifically, in 1985, the depreciation rate reached its peak at a rate of 7,655.7 percent...&quot;</p><p>&quot;The statistical perspective of this time period presents that the cumulative inflation that was incurred was 97,282.4 percent (9). In 1985, Bolivia’s inflation rate was the seventh highest inflation rate in its history, as “the total inflation averaged one percent per every 10 minutes” (6). It reached its monthly peak in September 1985 where the rate was 23,464.36 percent.&quot;[/QUOTE]</p><p><br /></p>

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