Currency Hot Potato

Apparently Zimbabwe had an inflation rate of 14,000% last month, for a total of 531 billion percent inflation this year.  If we assume for simplicity that inflation occurs only during working hours, if we spread if over 22 days a week, this means that ones pay at the end of the day is worth only 1/3 its value by lunch the next day, and 1/6 its value by the end of the next day.  My understanding is that Zimbabwe companies pay their employees several times a day and let them go out at lunch and buy something, anything, tangible with the cash before it is worthless a few hours later. 

By the way, I have my Zimbabwe 50 and 100 billion dollar notes on the wall of my office.  I am hoping for a trillion dollar note to go with it.  Meeses and Gippers coming soon.

  • Methinks

    only 14,000% per month? With help from a skillfully crafted bailout, we can surely beat that rate and win the prize for the dumbest banana republic on the planet.

    Bring. It. On.

  • Methinks

    'Coz, you know....inaction is just NOT an option.

  • http://www.two--four.net/weblog.php Billy Beck

    "My understanding is that Zimbabwe companies pay their employees several times a day and let them go out at lunch and buy something, anything, tangible with the cash before it is worthless a few hours later."

    During the Wiemar disaster, workers would daily throw bales of marks out the windows of factories to their wives waiting below, for the same reason.

    All of this is predictable as sunrise.

  • http://distributedrepublic.net Brandon Berg

    You'd think they would have worked out a commodity-based barter system by now.

  • ryan

    The barter system would work great if you didn't have a guy waving a gun or machete in your face insisting you trade exclusively using monopoly money or else.

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