The first experiences with banknotes were catastrophic. Practically all the governments who adopted this new type of circulating they fell in the fatal error to emit tickets in so high amount that they inflicted a sensible casualty of his value. Sometimes excessive emissions pronounced like the only possible way when the economic situation was uncontrollable. They have been very frequent the circumstances of this type in both last centuries, and recently have been repeated in diverse countries, mainly in South America, for example in Brazil and Argentina, and between the States of ex- communist block, including the dissolved today Soviet Union.

the inflation in Latin America

Many experts tie the present hipeñnflaciones of the countries of Latin America to their highest external debt. In this case, it blames, one equitably distributes between those who managed the loans, this is, the governments of those States and that they granted. One is one long history that began in 1973, when the complete dependancy became evident of western world of the petroleum provisions of the Arab countries. That year, OPEC, the organization who reunites to the producing States of black gold, it decided to strike the western, guilty nations to maintain to Israel politically. One of ace first dispositions was quadruplication of price of the petroleum, that allowed the Arab countries to accumulate in few capital enormous years, of the order of tens of thousands of million dollars, that partly they spent in rearming, whereas the elevated proportion more was deposited in the main ones European banks, specially in the English. Europe lived a period on great economic depression, which had to the call estanflación or sum of the effects of stagnation and of the inflation. In this phase the economic development stops: the demand diminishes, fall production and the export and increases unemployment. To it the effects of the inflation are added, this is, the loss of spending power of currency and the consequent rise of the prices. In this situation, the European banks, and partly also those of the United States, had remarkable difficulties to place the high sums deposited by the petroleum producers. The institutions of credit chose by to grant loans to the countries of Third World, that needed everything and lacked average paying the petroleum imports. These loans implied remarkable risks, because few of the companies that operated in those nations had possibilities of guaranteeing the payment of the interests and the reimbursement of the capital, For this reason, the bankers preferred to directly lend the bottoms to governments and a the public companies, Between numerous requests, chose some considered States relatively more insurances, and among them those of Latin America. To the loans an interest rate was applied to them that took into account the solution from indebted country. The banks public who granted the loans used enough time to grant the sums: in effect, guarantees protested on the stability policy and the application of concrete plans of investment for the development and industrialization. The commercial banks, with numerous branchs anywhere in the world, applied, however, faster methods, with which the number of beneficiaries of the loans increased remarkably. After few years, the amount of the debt of the developing countries surpassed the 70, 000 million dollars, and they began to arise doubts about installment of the interests and, mainly, the lent capitals. In order to complicate the situation, it exploded Iranian revolution; when lacking temporarily its high petroleum production, the price of this fuel was duplicated. The consequences more manifest they indeed affected the States of Latin America, to a great extent governed by dictatorships, that began to declare themselves insolventes. It was necessary to defer the victories and to grant more credits, but the unstable and weak economies of those countries could not to support the weight of the enormous interests that, accumulated, elevated the debt to more of a trillion of dollars, to a great extent, today can to affirm, non-recoverable.

Convivir with the inflation

The cases of hyperinflation are normal in countries like Brazil, Argentina or Peru, until the point of which it is possible to speak of one coexistence with the inflation, that already aggravates the painful situation of the less well off layers. Nowadays, it is of all normal one for inhabitants of these places, to directly live the progressive reduction on value of its currency, by means of the increasing zeros number of that they appear in tickets. The loans @, designed ” not only caused to the hyperinflation and the continuous renovation of the currency: behind payment of the enormous interests accumulated it is, to mention one of the most spectacular ej’emplos, the operation of the Amazonia, whose wood is one of the goods more precious positions for sale by Brazil indeed to confront the debts. But those were not only the indebted countries that suffered the consequences of the ominous mechanism of the loans, but also numerous institutions of credit. In effect, smallest of between these they began to break at the beginning of the Eighties. All it demonstrates to what extent the monetary system is fragile and banking, and delicate and how ample they are its connections. Obvious, the inflation does not cause only the loans to unstable political and economic systems. Between the other causes importan~ teas, the wars have played a role excellent. A terrible example offers the ex- Yugoslavia it, where the civil war is aiming literally the blow of grace to already the disastrous economy. Yugoslav dinar never was a strong currency: already at the end of the years eighty, the collapse of adopted socialist economic system in Yugoslavia, although more decentralized respect to the powers that other colectivistas economies, caused a galloping inflation. In order to face the enormous increase of the prices, the National Bank had of progressively to increase to the nominal value of its paper money, until the point of which at the end of 1989 bills of 500, 000 circulated and 1. 000. 000 of dinares. In 1990, when the civil war already was in doors, it appeared the last series with epígrafes in the four languages officials: Serb, Croatian, Slovene and Macedonian. A monetary reform was carried out as quickly as possible, that instituted the new one to dinar, corresponding to 1 0, 000 old ones, but were a barely practical measurement. In 1991, Slovenia and the Croatia declared independence, and Bosnia the same made the year following, unleashing with it the civil war, perhaps latent many years ago, among other causes by the resentment of most of the population towards the communist government of Beigrado. The concurrence of the unfortunate effects of the war and of embargo decided by the United Nations, has impelled to the State bank of new Yugoslav Federation, formed by Serbia and Montenegro, to emit a ticket of 50, 000 new million of dinares, to face one hyperinflation that, in 1993, reached monthly 1, 000%! Decades ago it did not happen in somewhat similar Europe. Other debts, contracted unavoidably by Germany at the end of the First War World-wide, they caused one of the most spectacular inflations of history. The treaty of Versailles, of 1919, imposed to that country the payment of repairs military by value of 132, 000 million marks gold, like which they circulated before conflict, a crazy number that, obvious, never it would be paid. Germany was economically of knees. The government was forced to emit an increasing amount of paper money that lost value at a speed of vertigo. The rate dementia of the inflation comes attested by the change from frame with respect to the dollar: in 1919 by a dollar 16 marks were paid, whereas in 1922 that amount had ascended to 7. 650. In 1923, the most tragic year, the change was increased of month in month: of June to August a dollar happened to be worth 75, 000 marks to 1. 100. 000, in October it was worth 242 million already, and in November it arrived at the 4, 2 trillions. The tickets emitted by the Reichsbank are imprimían in values of million, thousand of million and trillions. In December of 1923 almost 500 trilemons of marks circulated, to which it is possible to add a perhaps superior number in form of notgeld, that is emergency currency. At the end of second world-wide conflict, in Hungary happened something worse. In the course of the first months of 1946, the loss of value of the national currency, pengo, reached unusual levels: it was gotten to print the value of billion B-pengo, that is thousand trillions of pengo!


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