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Mises Economics Blog

Mugabenomics in action

November 22, 2007 4:49 AM by Tim Swanson | Other posts by Tim Swanson | Comments (3)

It appears that the government of Zimbabwe is giving the Hungarian pengő, a run for its money (literally): Cash runs out in land where the bus fare is 1.6 m dollars

Some sobering points:
- October's annualized inflation was 14,840%, up nearly double from September
- The highest paper currency, the Z$200,000 note, has almost disappeared
- Cash machines don't work because it takes only four customers to empty them
- Cash has become tradable, attracting a 20% face premium when swapped for fuel and beef

See also: 1 2 3 4 5 6

Via Infectious Greed

Comments (3)

  • flix

  • Wait for it..

    "It can't happen here!"

  • Published: November 22, 2007 10:48 AM

  • Daniel M. Ryan

  • If you want to confound a simple-minded liberal, try slipping around a piece with the title, "Zimbabwe: How the 'best' of twentieth-century social policy led to a nineteenth-century life expectancy."

  • Published: November 23, 2007 12:27 PM

  • Tom Hurst

  • Though we all wince or laugh at the economic chaos in Zimbabwe, unless things in the U.S. change drastically and quickly, it is only a matter of time until the U.S. dollar will again be at parity with the Zimbabwe dollar. We're just playing catch-up right now...

  • Published: November 23, 2007 6:21 PM

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