Thursday, February 08, 2007


If you want to read about life in Zimbabwe, a country that is currently experiencing hyperinflation, click here.

One point here is that prices are rising faster than wages can adjust.

"The trigger of this crisis — hyperinflation — reached an annual rate of 1,281 percent this month, and has been near or over 1,000 percent since last April. Hyperinflation has bankrupted the government, left 8 in 10 citizens destitute and decimated the country’s factories and farms.
Pay increases have so utterly failed to keep pace with price increases that some Harare workers now complain that bus fare to and from work consumes their entire salaries. "

And to provide a source as to why even moderate levels of inflation, say 5-10% can be problematic, click here.

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