Things could be worse I suppose. Zimbabwe's inflation rate is now, by one estimate, 89.7 sextillion percent
Posted by
Brian (aka trav007)
Nov 20 '08, 09:57
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New Hyperinflation Index (HHIZ) Puts Zimbabwe Inflation at 89.7 Sextillion Percent
by
Steve H. Hanke*
Professor of Applied Economics
The Johns Hopkins University
and
Senior Fellow
The Cato Institute
Zimbabwe is the first country in the 21st century to hyperinflate. In February 2007, Zimbabwe�s inflation rate topped 50% per month, the minimum rate required to qualify as a hyperinflation (50% per month is equal to a 12,875% per year). Since then, inflation has soared.
The last official inflation data were released for July and are hopelessly outdated. The Reserve Bank of Zimbabwe has been even less forthcoming with money supply data: the most recent money supply figures are ancient history�January 2008.
Absent current official money supply and inflation data, it is difficult to quantify the depth and breadth of the still-growing crisis in Zimbabwe. To overcome this problem, Cato Senior Fellow Steve Hanke has developed the Hanke Hyperinflation Index for Zimbabwe (HHIZ). This new metric is derived from market-based price data and is presented in the accompanying table for the January 2007 to present period. As of 14 November 2008, Zimbabwe�s annual inflation rate was 89.7 Sextillion (1021) percent.
The HHIZ will be updated weekly and available on the Cato Institute�s web site. www.cato.org/zimbabwe
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