Via Prieur du Plessis’ website, we see that inflation in Zimbabwe remains slightly elevated (Fortunately for the Mugabe regime, Core Inflation remains contained):
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Fortunately for the Mugabe regime, Core Inflation remains contained . . .
Inflation, Zimbabwe Style
June 4, 2008 3:30pm by Barry Ritholtz
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…you just double the tax to get the tip right?
KOTW
How wide are the petrol pumps to accommodate the necessary digits?
not only is inflation in Zimbabwe and the US contained, it’s nowhere NEAR the level of the 1970s. that’s the most important take-away. the only thing bernanke, inflation and the ’70s have in common is that goatee. or beard. whatever is is.
despite the large number, he’s still only paying a couple of dollars (US) for the meal. i guess we can all vacation in sub-saharan africa, since american peso is no longer worth the paper its printed on in europe.
I guess we should be optimistic about at least one thing: a generation of very bright mathematicians from Zimbabwe. If it cost you a few hundred million Z$ to buy a candy bar, you’ll want to be VERY competent with numbers.
Today U.S. Federal Reserve Chairman Ben Bernanke said, “…we see little indication today of the beginnings of a 1970s-style wage-price spiral, in which wages and prices chased each other ever upward.”
INDICATIONS: Spend-a-holic Congress representing a broke & angry constituency… Multi-trillions in unfunded government liabilities…Global demand outstripping supply…$20 once bought oz. of gold, now buys about an oz. of silver, eventually, a soda & bag of chips?
More importantly, inflation *expectations* remain well-anchored!! :)
At least the last 3 digits are irrelevant, though it seems past time for the last 6 to be.
“…we see little indication today of the beginnings of a 1970s-style wage-price spiral, in which wages and prices chased each other ever upward.”
Inflation without wage increases.
Whoopeee.
Stick a dollar sign in front of it instead and that’ll be the annual Fiscal deficit in a couple years.
Wages could chase prices because workers were able to negotiate.
Now…they’re supposed to be happy if they get something, anything.
And of course, it must be entirely their fault if it is the way it is.
Workers of the world, unite! Become financiers, bankers and traders. With all the new riches coming your way, you’ll be able to find suckers who’ll produce stuff for you.
Ain’t life awesome?
Mugabe’s concluding remarks at today’s Harvard Commencement address ‘…and when you leave these hallowed halls, leave by helicopter.’
I guess I won’t be visiting Zimbabwe while I’m visiting South Africa next month.
The bad thing is, that looks to be about $3.
Guess who is praising whom…
http://gregmankiw.blogspot.com/2008/05/with-friends-like-this.html
I’m starting to think their inflation could turn into a real headwind(tm) rather than merely an academic debate over the most beneficial rate of inflation. They will soon have to reprogram all the terminals to print landscape to fit all the digits.
Fortunately the US seems to have proactively reduced many charge slips to a 4pt font.
don’t give Bernanke any encouragement
Wow, you don’t get a real sense of hyperinflation until you see something like that. That’s unreal.
Justin, I’m sorry to break it to you, but that’s not really hyper-inflation you’re looking at.
That receipt was from back in March, when the annual inflation rate was only a mere 165,000% (one hundred and sixty-five thousand percent).
In the last month, the Y/Y inflation rate reached 1,800,000% (one point eight million percent).
Clearly the inflation in March was merely super-inflation, not hyper-inflation.
Link: http://www.reuters.com/article/latestCrisis/idUSL04243842
Interesting to see how the ATMs dispense that kind of money….
Actually they don’t dispense anything near even 100 million. you have to queue for ages to get any real money out and even that lasts only a day…its a nightmare
hey… we guys in India are crying hoarse and holding protests on the inflation jumping to 8 %…. Cany imagine the situation in Zimbabwe.. poor guys!!! my symphaties…