10 Times Inflation Destroyed Economies
6. Greece (mid-1940s)
Current economic woes are nothing new for Greece. The country has a long history of catastrophic events. Toward the end of World War Two Greece’s economy suffered heavy losses, and its monthly inflation rate peaked at 13,800% in October, 1944, with a daily inflation rate of 20.9%.
World War Two left Greece in debt because the government covered its expenses by printing money instead of taxing its citizens. The German-Italian occupation destroyed the economy, and eventually citizens lost faith in the currency. As a result the central bank began to issue gold franc coins which cut the demand for the currency.
As is the story today, post-war Greece was also bailed out by the international community. To end hyperinflation Greece joined the international Bretton Woods system in 1953, which fixed exchange rates linking international currencies to the US dollar.
