Effects of War and Hyperinflation On Wealth and Commerce
Hyperinflation, wars and revolutions cause hording of essentials and a disruption of markets. In some past hyperinflations, workers were paid daily and immediately spent their earnings on essential goods, which they often used for barter. Store shelves were frequently empty.
More stable foreign currencies, silver and gold (usually coins) were held and exchanged in place of local currency. The minting country of precious metal coins tended to be relatively unimportant. Jewelry was also used as a medium of exchange. Alcoholic beverages were also used for barter.
Desperate individuals sold valuable possessions to buy essentials or traded them for gold and silver.
In the German hyperinflation stocks held much more of their value than paper currency. Bonds denominated in the inflating currency may lose most or all value.
Read more about this topic: Economic Disasters
Famous quotes containing the words effects of, effects, war, wealth and/or commerce:
“The hippie is the scion of surplus value. The dropout can only claim sanctity in a society which offers something to be dropped out of—career, ambition, conspicuous consumption. The effects of hippie sanctimony can only be felt in the context of others who plunder his lifestyle for what they find good or profitable, a process known as rip-off by the hippie, who will not see how savagely he has pillaged intricate and demanding civilizations for his own parodic lifestyle.”
—Germaine Greer (b. 1939)
“If one judges love according to the greatest part of the effects it produces, it would appear to resemble rather hatred than kindness.”
—François, Duc De La Rochefoucauld (1613–1680)
“The words of his mouth were smoother than butter, but war was in his heart: his words were softer than oil, yet were they drawn swords.
Cast thy burden upon the Lord, and he shall sustain thee: he shall never suffer the righteous to be moved.”
—Bible: Hebrew Psalm LV (l. LV, 21–22)
“Farewell, Love, and all thy laws for ever:
Thy baited hooks shall tangle me no more;
Senec and Plato call me from thy lore,
To perfect wealth my wit for to endeavour.”
—Sir Thomas Wyatt (1503?–1542)
“On 16 September 1985, when the Commerce Department announced that the United States had become a debtor nation, the American Empire died.”
—Gore Vidal (b. 1925)