Wednesday, January 14, 2009

Hyperinflation in Zimbabwe

Conditions in Zimbabwe continue to deteriorate, The central bank is issuing a $50 billion note, which is not that impressive, except that in August it eliminated ten zeros from it currency. So the new note should actually have twenty zeros. What would that be, a 5 with twenty zeros? Is it 500 quintillion?

The value of the currency may not matter much anymore--there is flight away from it:
Economist Luxon Zembe told reporter Jonga Kandemiiri of VOA's Studio 7 for Zimbabwe it is of little use for workers to withdraw all their money in Zimbabwe dollars when most retailers and transport operators now demand payment in hard currency.
There is crisis in medical care, which has prompted a promise to pay medical personnel in foreign currency.

Mugabe is on of Jimmy Carter's legacies.

No comments: