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11 Countries With the Highest Inflation Rates in the World

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The 11 countries with the highest inflation rates in the world are battling one of the most pestering problems of the modern world economy. Due to its very dynamic nature, today’s economy is able to change dramatically over the course of a couple of days, which can affect many countries that seemingly have no relation. Unlike the 10 fastest growing economies in the world, these countries are taking a turn and going downhill from where they were for one reason or another.

For the unenlightened, inflation is the gradual rise in general living prices for a country while the income stays the same. This includes power prices, water and electricity prices and general goods. While seemingly only the population would suffer from such an event, you should keep in mind that in an economy, every little part along the chain is related and affects the next. So once the population is hit with higher living costs, they will demand higher payments which effectively makes the businesses there less profitable and turns away foreign investors or outsourcing opportunities. Just like that, the reverse course of cause and effect can be observed, where a country loses a part of it business and investments and prices rise as a result.

Inflation is one of the most common economical problems and one of the main targets for every financial sector of any government to battle. However, fully eradicating it is impossible but also would be bad for an economy. This is because inflation also has positive effects, mainly manifested in unemployment reduction, healthy interest rates and many others. With this in mind, you should know that no inflation is way worse than a healthy percent of inflation. Let’s take a look at the 11 countries which fail to keep theirs in check.

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