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Two Hyperinflations In Less Than Ten Years Did Mugabe In

Robert Mugabe’s 37-year reign of lawlessness, corruption and incompetence has just come to an end.  Mugabe is toast, thanks to a “soft coup” engineered by Emmerson Mnangagwa (aka: “the Crocodile”), who was Zimbabwe’s Vice President until he was dismissed earlier this month by Mugabe. Now, with the support of the military, the Crocodile will probably serve as Interim President until elections are held. What really did Mugabe in?  Two episodes of hyperinflation in less than 10 years did the job. 

The first episode occurred during the 2007-08 period. It was then that Zimbabwe suffered the second most severe episode of hyperinflation in recorded history. As shown in the table below, the annual inflation rate peaked in November 2008 at 89,700,000,000,000,000,000,000%. 

This year, Zimbabwe once again experienced a bout of hyperinflation. This second episode began on September 14, 2017. At present (11/15/17), the annual inflation rate is 323%, as shown in the chart below.

Zimbabwe’s hyperinflation episodes finally produced enough outrage to enable the Crocodile to outsmart Mugabe. 

Next stop, Venezuela? Will inflation prove to be the catalyst that unseats Maduro?

Past Blogs

Venezuela's Grim Reaper: A Current Inflation Measurement - Current Annual Rate 2588%

November 07, 2017

As the bolivar collapsed and inflation accelerated, the Banco Central de Venezuela (BCV) became an unreliable source of inflation data. Indeed, from December 2014 until January 2016, the BCV did not report inflation statistics. Then, the BCV pulled a rabbit out of its hat in January 2016 and reported a phony annual inflation rate for the third quarter of 2015. So, the last official inflation data reported by the BCV is almost two years old.

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Zimbabwe’s Inflation Monitor: A Weekly Update

November 06, 2017

In 2008, Zimbabwe suffered the second most severe episode of hyperinflation in recorded history. The annual inflation rate peaked in November 2008, reaching 89.7 sextillion (10^23) percent (see table below).

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Iran Should Go For Gold, Not A Currency Reform Illusion

November 03, 2017

Last December, the Iranian government of Hassan Rouhani passed a bill to change the name of Iran’s national currency from the rial to the toman. This would require a redenomination in which one zero was lopped off Iran’s unit of account, as 1 toman is equal to 10 rials. Without a change in the monetary and exchange rate regime, the proposed changes amount to a great illusion.

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Venezuela's Current Inflation Measurement - Current Annual Rate 3286%

October 25, 2017

Venezuela's Grim Reaper: A Current Inflation Measurement - Current Annual Rate 3286% - As the bolivar collapsed and inflation accelerated, the Banco Central de Venezuela (BCV) became an unreliable source of inflation data. Indeed, from December 2014 until January 2016, the BCV did not report inflation statistics. Then, the BCV pulled a rabbit out of its hat in January 2016 and reported a phony annual inflation rate for the third quarter of 2015.

more »