We know that Brazil is one of the countries with the highest tax burden, but which country has the world’s worst inflation?
After all, here it is nothing new that high prices erode the income of the population.
Therefore, if you want to check it out and clear your doubts once and for all, see now which country has the worst inflation in the world. Look!
After all, which country has the worst inflation in the world?
If you thought that Brazil would be number 1 in terms of inflation, know that this is not the case. After all, the champion country in terms of inflation is Hungary.
That’s because, Hungary was in the grip of the worst inflation on record. Proof of this is that, at its peak, it reached 41,900,000,000,000,000%.
In practice, this means that average prices doubled approximately every 15 hours.
Thus, economists consider that hyperinflation is defined as a 50% increase in average monthly prices. Therefore, the country enters the classification with leftovers, unfortunately.
Low wages and lower quality of life
Due to soaring inflation, millions of Hungarians saw their real wages and living standards plummet. As a result, there is a flood of debt and a real struggle for survival.
It is worth mentioning that when the price spiral was controlled, the total value of all the money in circulation in the country corresponded to a fraction of a US cent.
But what exactly caused all this increase in prices?
The origin of the price increase
Like other European countries, Hungary was suffering from the aftermath of the Second World War. After all, in the beginning the nation strongly sided with the Axis, even participating in the 1941 attack on the Soviet Union.
Then, in the year 1942, predicting that Germany would lose the war, its leaders began secret negotiations with the allies. As if all this were not enough, Adolf Hitler discovered the contacts and in 1944, invaded the country. His aim was to establish a pro-Nazi administration there.
“The terrible consequence of this was that 437,000 Hungarian Jews were deported to Auschwitz,” says László Borhi, president of Peter A. Kadas and professor at the Hamilton-Lugar School at Indiana University, USA.
He still remembers that afterwards, the country ended up being a battleground between the USSR and Germany. Thus, the Budapest region experienced one of the greatest sieges of the war.
Catastrophic consequences
Thus, at the end of the period, the country’s economy was completely fragile, as we can imagine, and the Germans took about US$ 1 billion in goods and commodities out of the country. Furthermore, half of its industrial capacity suffered and 90% of what was left had damage.
An example of this is the fact that most of the railroads and locomotives were destroyed. On the other hand, what had use was still taken by Nazis or Soviets.
To make matters worse, around 70% of the buildings in Budapest were totally different and turned into rubble.
In addition, agricultural production also suffered, falling by almost 60%. With such a scenario, the country was on the verge of extreme famine.
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So, now that you know everything about this subject, it remains to hope that this reality changes for the good of the population.
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