THE WORLD'S WORST INFLATION?
By Joel Anderson

The recent civil war in what used to be Yugoslavia has brought on some of the worst inflation the world has ever known, far exceeding that of the famed 1923 hyper-inflation of Germany. In 1990, with the collapse of the "communism" throughout Europe, a new currency was introduced, with one of the "new" Dinara being equal to 10,000 of the "old" Dinara. Inflation picked up in 1992, as the Slovenia, Croatia, Bosnia-Herzegovinia, and Macedonia declared their independence from Yugoslavia. Another new currency was introduced, with one of the "new" Dinara being equal to ten of the previous Dinara. By the autumn of 1993, with an international embargo on Yugoslavia and the country trying to support Serb rebels in Croatia and Bosnia-Herzegovinia inflation really got going, and another new currency was introduced, also called the Dinara, with one new Dinara equal to 1 million previous Dinara. Paying for a war by running the printing press does not work. Denominations as high as 500,000,000,000 Dinara were produced, before another new currency was introduced on January 1, 1994, with of the new Dinara being equal to 1 Billion of the previous Dinara that had been introduced only months before. Thus it took 100,000,000,000,000,000,000 of the new 1994 Dinara to equal one of the pre-1990 Dinara.

Naturally by now no one trusted the Yugoslav currency. The German Mark had become the preferred currency. In February 1994 the Yugoslav government gave up on the old Dinara and started over. A new currency, tied one to one to the German Mark was introduced. Production was severely limited based on the amount of hard currency on hand and some of the worse inflation the world ever knew came to an end.

Most of the notes issued during this inflationary period are available to collectors. Be careful about paying the prices shown in the paper money catalogs. Many formerly hard-to-find notes with high catalog values are becoming available for only a few dollars each or less.


JOEL ANDERSON
 INTERESTING WORLD COINS & PAPER MONEY
www.joelscoins.com
Joel Anderson
PO Box 365
Grover Beach, CA 93483-0365 USA
phone/fax 1 805 489 8045

email: orders@joelscoins.com

Click Here Back to Articles Page
Click HereBack to Joel Anderson Home Page

This article may be reproduced as long as credit is given to the author and a reference is made to the www.joelscoins.com web site.



CLICK ON THE PAGE YOU WOULD LIKE TO TO VISIT:
Joel Anderson Home Page
Secure 
On-Line
Ordering 
Ordering & Privacy
Information
On-Line Catalogs
Recent
Issues
Numismatic Books for Sale
The Firm
(or more about us)
Upcoming Coin Shows
Articles  about collecting