Zimbabwe's way of tackling inflation

By Anthony Batty | 18 July 2005

Here at the Globalisation Institute, we often come across new ways of doing things. In the photo (click it for a larger picture), you can see one idea which is new to us, but that we hope doesn't take off.

It is the new Zimbabwean currency, rather than being a conventional note, the kind you would see in every other country, this is a 'Bearer Cheque'. Unlike a note, it has an expiry date, a novel way to control inflation (instead of printing notes of progressively larger value).

The raison d'etre of the change, is of course, to control the hyperinflation the country is suffering from. A direct result of disastrous economic policies followed by Robert Mugabe. Zimbabwe's economy has been declared by the UN the fastest shrinking in the world. GDP is set to fall by 12% this year alone. Click here for a graph of the inflation rate. Judging by the way things are going it won't be long before we see larger cheques too!

Our advice for Zimbabwe? Turn off the printing presses.