Zimbabwean Inflation at 4 Million Percent?

by James & Miel on July 1, 2008 · 0 comments

Hi All,

I just had to get this up. If you’ve been following the news about Zimbabwe, you probably know the economic situation is very bad there. But, now the AP news is reporting that inflation may be at 4 million percent. In February alone, the countries official statistics measured inflation at 165,000 percent. Let me repeat that – 165,000 percent, in one month.

Now, I’m not an economist, but 4 million percent is out of control. Effectively it means that Zimbabwe’s economy is ruined. Think about it – with that kind of inflation its impossible to save for a house or start a business. Since the money becomes worthless overnight, budgeting is an exercise in futility and if you already have a business or work for a wage, you are likely to get wiped out by the declining value of the currency.

The AP story is also reporting that its gotten so bad, the German firm that sells the bank note paper to Zimbabwe has stopped at the request of the German government. They don’t want to be a party to the disaster.

Check out the story here.

Best,

James

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