The aggression against Ukraine has caused numerous economic problems, and there is more and more talk about inflation and stagflation. Citizens are in a worsening situation and find it difficult to cope with the daily rise in prices. As if all this is not enough, stories about the possibility of hyperinflation appeared lately. An economic analyst Igor Gavran talked about this topic.
As he explained, there is no mathematical definition that speaks above how much estimated inflation becomes hyperinflation.
”In essence, very simply, we are talking about a high inflation rate and fast-growing inflation. It is increasing to the extent that it is really significantly maintained on the price set and disrupts the market to a greater extent. That is, for example, the difference in relation to the classic inflation, which is normal and which we have even without any crisis, that is, it is expressed in several estimates,” noted Gavran.
Even though the danger of hyperinflation exists, it will not be as pronounced as in previous periods.
”There is a danger, but it will not be expressed to the extent that it amounts to several hundred percent more than now. However, when we look at it cumulatively for a long period of time, there is a danger and we already have that,” Gavran stressed.
In countries that have introduced measures to fight inflation by the end of the year, there may be a slowdown in price growth and even their reduction. However, as our state has not yet taken concrete steps, the situation is not the best.
”We see the reactions of central banks in the world that increase interest rates, which in theory always leads to a decrease in inflation after a certain time. Many countries have intervened by reducing various fuel duties, and introducing new measures to curb inflation, so where something is done to curb inflation, there will be a slowdown in price growth. As far as BiH is concerned, nothing is being done about the issue of inflation, so I am afraid that we can still expect growth,” Gavran concludes.
Berlin in 1923
The most famous inflation is the one in Germany in 1920 when it was an incredible 30.000 percent. Bread in Berlin at the beginning of 1923 cost 250 marks at the time, while in November of the same year it reached a price of 200.000 marks, Avaz writes.