Wednesday, July 16, 2008
10,000,000 Dollars - Highest Note Value
A 10 million Dollar note - but are there any goods to buy?
Zimbabwe's beleaguered economy posted a record inflation rate last month. The Central Bank's governor stated inflation in Zimbabwe has now reached 2.2million % - a thirteen fold increase in inflation since February.
Hyperinflation seems out of control as the economy collapses on the back of disruption to supply and unworkable price controls. Life expectancy in Zimbabwe is one of the lowest in the world; it is only 34 for women. 3 million have fled to neighbouring countries.
Costs of Hyperinflation Include:
- Menu costs - costs of changing price lists
- Collapse in economic confidence
- Sheer difficulty in dealing with prices rising at astronomical levels
- Hyperinflation is often symptomatic of underlying problems in economy
- Savings flee economy
Posted by Tejvan Pettinger at 1:51 PM