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Wednesday, February 7, 2007

Hyperinflation Ravages Zimbabwe

For close to seven years, Zimbabwe’s economy and quality of life have been in slow, uninterrupted decline. They are still declining this year, people there say, with one notable difference: the pace is no longer so slow…. The trigger of this crisis — hyperinflation — reached an annual rate of 1,281 percent this month, and has been near or over 1,000 percent since last April. Hyperinflation has bankrupted the government, left 8 in 10 citizens destitute and decimated the country’s factories and farms…. [President Robert] Mugabe, who blames a Western plot against him for Zimbabwe’s problems, has rejected all calls for economic reform. (New York Times, Wednesday)

All it It takes to bring a country to its knees is a printing press.

FEE Timely Classic
Hyperinflation: Lessons from South America by Gerald J. Swanson