May 26, 2010 Reading Time: < 1 minute

“Zimbabwe’s hyperinflation is destroying the economy, pushing more of its inhabitants into poverty and forcing millions of Zimbabweans to emigrate. Since 1997, inflation has surged by 1,030,217%, while living standards (as measured by real GDP per capita) have fallen by 35%. In addition, hyperinflation has robbed people of their savings and financial institutions of their capital via negative real interest rates. This form of theft occurs, in large part, because the laws and regulations governing financial institutions (pension funds, insurance companies, building societies, and banks) force them to either purchase government treasury bills that yield only a small fraction of the current inflation rate or to make deposits at the Reserve Bank of Zimbabwe that pay no interest.” Read more.

“Free Banking for Zimbabwe”
Steve H. Hanke
Via the Cato Institute.

Image by Graeme Weatherston / FreeDigitalPhotos.net.

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