Time to Switch From Meese's to Gipper's
One sure sign of a hyperinflation is that the central bank must
issue new currency notes in ever higher denominations so that people
won't have to carry bags or wheelbarrows of money around to make
everyday purchases. Sure enough, the government of Zimbabwe is now
wrestling with that very question. According to the FT story:The launch yesterday of a new large-denomination bank
note of Z$200,000"”worth [US$13] at the official exchange rate and
[US$1.30] at the more realistic parallel rate"”underlines the disarray.
The central bank had wanted to issue a Z$500,000 note, but a bank
official said this was vetoed by the finance ministry because senior
staff thought such a large denomination would have reinforced an
impression that inflation was out of control.At a 13,000 percent rate, that cat is probably already out of the bag.
What a mess. Explanation of the post title here.
