Zimbabwe's 10,000,000 dollars note

Believe it or not, Zimbabwe has to issue the 10,000,000 Zimbabwean Dollars notes to counter the hyperinflation situation in Zimbabwe.

The value of this 10,000,000 Zimbabwe Dollars is equivalent to US$3.90 or £2 or 2.60 euros. Reason given by the central bank, Reserve Bank of Zimbabwe, in issuing this note - further attempt to stabilise the Zimbabwean economy.

Situation in Zimbabwe hasn't improve since my last posting on "How High Can Inflation Hit Us? 100%? 100,000%?".

What's hyperinflation?
In economics, hyperinflation is inflation that is "out of control," a condition in which prices increase rapidly as a currency loses its value. No precise definition of hyperinflation is universally accepted. One simple definition requires a monthly inflation rate of 20 or 30% or more. In informal usage the term is often applied to much lower rates. As a rule of thumb, normal inflation is reported per year, but hyperinflation is often reported for much shorter intervals, often per month.

The definition used by most economists is "an inflationary cycle without any tendency toward equilibrium." A vicious circle is created in which more and more inflation is created with each iteration of the cycle. Although there is a great deal of debate about the root causes of hyperinflation, it becomes visible when there is an unchecked increase in the money supply or drastic debasement of coinage, and is often associated with wars (or their aftermath), economic depressions, and political or social upheavals.
Tags: Zimbabwe, 10 Million Dollars, Economics, Hyperinflation