This is worth one (Indian) buck. Today. Tomorrow it might not, because Zimbabwe is having some 165,000 percent inflation. I don't even know what that means, but if I get it right inflation is about 18% per HOUR (not compounded). So on Thursday this is 25 paise, and on Friday this is one anna (6 1/4 paise).
Every day my wealth is quadrupling, as measured in Zimbabwean dollars.
Related posts:
- Inflation, Oil and Exchange Rates Inflation is at 7.85%, a 44 month high. And oil...
- What’s the deal with inflation and the rising rupee? To control inflation, the RBI seems to be letting the...
- Bond Markets, Inflation, Policy Action And the Lag Effect This comes from two comments to my last post asking...
>That was an awesome post. I am not an economics guy, but I am just wondering 2 basic things:
a) How is business still continuing in Zimbabwe?
b) Is there any way this situation may be rectified?
My sense of logic tells me nothing can be done, since the central bank out there was surely not sleeping (with Mugabe, pun intended) all this while. If you have any pointers on how this case might be salvaged let us all know.
–Arpan
07.02.08 at 5:26 PM
>Arpan,
I understand your question is financial one.
I was pondering about your point no2. Now why in this world you want to rectify a situation there when we in India have plenty of situations which need to be improved.
Yesterday I was watching the news on CNN when the African council had meeting. Many of the leaders are sole dictators in there own countries. When UK says anything against thug Mugabe he plays British are trying to make Zimbabwe colony again, card. Many tugs ruling many parts of the Africa itself. World is looking towards African leaders to resolve Zimbabwe’s problem. But why other thugs would interfere and on that to what basis? And about business there are many countires which do that very happily with them, e.g. China supplying arms, Russian, chinese metals/minerals(latest),oil and gas interests. What you think when Kenya did took over assets of Indians and expelled them from there, Zimbabwe did the same with whites there, took their land in the name of land reform.
In short its other exponential form of Bihar(pun intended) but only difference is they use guns and rockets instead of sticks.
07.02.08 at 9:32 PM
>wow that made me feel so good :-)
Even ajay shah is hinting that rbi is more worried about the dollar rupee rate than the inflation rate
http://www.moneycontrol.com/india/video/stockmarket/18/04/newsvideo/344471
on a humorous note
are u thinking in terms of the fm and the govt – which has been saying since a yr – everything is fine
us mkts fall again – our mkts heading for capitulation ?
07.02.08 at 10:29 PM
>And the German co that supplys his paper has agreed to stop deliverys
http://online.wsj.com/article/SB121494022693420271.html?mod=rss_markets_main
07.02.08 at 10:38 PM
>Usually such a situation arises due to civil unrest/war for long prolonged period and failure of financial system. Similar events happened in past in Germany and US which are todays developed and powerful countries. The only way this can stop is to establish law and order, end to civil war and establish a stable financial system…..
which by no means is an easy task…
07.02.08 at 11:33 PM
>German Company which supplies paper for printing Zimbabwe Notes has been ordered to stop suppling paper by German Government.
So the best (as it is already happening) is to switch to barter trade (or South African Rand)
In 1985 one Zimbabwe Dollar was equal to one USD.
Lesson for India: Even Indian Rupee can turn to toilet paper if Economic collapse occurs.
07.03.08 at 1:18 AM
>Today morning in Wall Street Journal, I saw 50 billion(yes billion!!) Zimbabwe dollar denomination. Unfortunately WSJ website doesn’t have that picture. Also Zimbabwe is running out sheets to print money.
http://online.wsj.com/article/SB121494022693420271.html
07.03.08 at 2:23 AM