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This had a huge impact on the countries money supply. The government countered by printing more money, resulting in inflation. Inflation is a constraint to development as those already marginalized are most affected. Individuals with limited economic worth do not have an accumulation of assets to increase their position in stride with inflation and therefore their economic position is greatly decreased compared to individuals with greater personal wealth...
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This ailing money supply also constrained the development of the private sector as the banks had limited funds, available only at high interest rates for the private sector. The large investment projects, and lack of political stability resulted in massive monetary issues that had a negative effect on development of the country...
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