SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Africa and its Issues- Why Have We Ignored Africa?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: sea_urchin who wrote (561)7/31/2006 8:23:13 PM
From: TimF  Read Replies (1) of 1267
 
I'm not sure how effective lopping off zeros will be. If you have a million 100,000 zim notes, and you turn them in to a million 100 zim notes, you have the same number of notes chasing the same number of goods. You've just changed the appearance of the notes. Officially prices might go down, but not in a way that means anything. The inflationary pressures still exist.

Consumers and businesses alike will have to justify their holdings of Zimbabwe dollars over 1 million and 5 billion dollars, respectively, when they turn in old bills. And border posts will tighten inspections to keep offshore black market currency dealers from bringing massive amounts of currency into the country for the trade-in.

Well that might reduce the supply of money, even if it is by confiscation.

Lopping off zeros is meant to relieve the problems inflation has caused for businesses and others whose software and machines have boggled at long strings of zeros.

OK that's a benefit, but how long does it last if the basic economy isn't put in order. Issuing new currency can help as part of overall economic reform, but it won't help if you proceed to run the printing presses after the change.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News