DrBanneker
Space is the Place
Well sadly, here we go again. In this case it isn't driven by printing money but rather it seems the currency basket (primarily USD) peg the government went to is collapsing and banks are rationing dollars. Sad to see the country in this situation. ZANU-PF should at least ditch Mugabe and get someone new. Simba Makoni?
Zimbabwe: Hyperinflation Threat Returns to Zimbabwe
@King Booker @Man @Northern Son @NinoBrown
By MacDonald Dzirutwe
Less than a decade after hyperinflation obliterated Zimbabwe's dollar along with its pensions and savings, the southern African nation is suffering a return to precipitous price rises.
Zimbabwe adopted the U.S. dollar in 2009, along with Britain's pound and the South African rand, to tame inflation that topped out at 500 billion percent.
But the relative financial stability of the last eight years has unravelled in the last two months as acute foreign exchange shortages have led to sharp price increases. Meanwhile money in banks is losing value fast.
The situation is still a far cry from 2008 when the central bank printed a Zimbabwe $100 trillion note.
But Steve Hanke, an economics professor at Johns Hopkins University in the United States, said in paper published this week that hyperinflation - defined as monthly inflation above 50 percent for at least 30 consecutive days - had returned.
Zimbabwe's real inflation rate, measured by purchasing power parity and taking into account its de facto exchange rate, was 313 percent a year and 112 percent on a monthly basis, said Hanke, who has written a book about the country's 2008 crisis.
Zimbabwe: Hyperinflation Threat Returns to Zimbabwe
@King Booker @Man @Northern Son @NinoBrown
By MacDonald Dzirutwe
Less than a decade after hyperinflation obliterated Zimbabwe's dollar along with its pensions and savings, the southern African nation is suffering a return to precipitous price rises.
Zimbabwe adopted the U.S. dollar in 2009, along with Britain's pound and the South African rand, to tame inflation that topped out at 500 billion percent.
But the relative financial stability of the last eight years has unravelled in the last two months as acute foreign exchange shortages have led to sharp price increases. Meanwhile money in banks is losing value fast.
The situation is still a far cry from 2008 when the central bank printed a Zimbabwe $100 trillion note.
But Steve Hanke, an economics professor at Johns Hopkins University in the United States, said in paper published this week that hyperinflation - defined as monthly inflation above 50 percent for at least 30 consecutive days - had returned.
Zimbabwe's real inflation rate, measured by purchasing power parity and taking into account its de facto exchange rate, was 313 percent a year and 112 percent on a monthly basis, said Hanke, who has written a book about the country's 2008 crisis.
hyperinflation is brazy
