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Old 02-07-2007, 10:24 AM   #1
Cowperson
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Default Hyperinflation and the collapse of Zimbabwe

Today's New York Times has an interesting look at an economy where the government attempts to control everything . . . .

Doomsday in Zimbabwe should be soon.

The government awarded all civil servants a 300 percent raise two weeks ago. But the increase is only a fraction of the inflation rate, so the nation’s 110,000 teachers are staging a work slowdown for more money. Measured by the black-market value of Zimbabwe’s ragtag currency, even their new salaries total less than 60 American dollars a month.

Doctors and nurses have been on strike for five weeks, seeking a pay increase of nearly 9,000 percent, and health care is all but nonexistent. Harare’s police chief warned in a recently leaked memo that if rank-and-file officers did not get a substantial raise, they might riot.

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.

http://www.nytimes.com/2007/02/07/wo...rtner=homepage

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