Tuesday, January 27, 2009

A not so new approach with not so new results

Robert Mugabe is apparently taking advice from World War 2 veterans and to his dismay appears to finding exactly the same as the Germans found in those days - printing more money will not take you out of a financial crisis.

Zimbabwe has been experiencing hyperinflation for at least the last year but the economic policy seems to show no signs of adapting. Notes of increasingly higher value are being printed - to the point of a trillion dollar note being introduced a couple of weeks back. Perhaps Mr Mugabe ought to read some basic macroeconomics and if that is above his station, then perhaps the cartoon on Wonkie about the Zimbabwe dollar hyperinflation cartoon may help him understand the mechanics of national finance.

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