The turbulent history of the Zimbabwe currency is aligned with the nation's deeply troubled economy. Once a major agricultural center of the region, Zimbabwe and its financial health experienced significant challenges that had severe effects on the country’s economy. For most of the past two deca...
But there is no doubt in my mind that we Zimbabweans are now much better off than we were, that what we earn, even though it is less than we want, has real buying power. But even better than that, our economy is now on a sound footing and starting to grow rapidly in real terms...
Fiat money is tender not backed by a tangible asset or commodity like gold. It’s usually mandated by governments & leads to corrosive effects on society.
Experts suggest that the currency lost 99.9% of its value during this time. Prices rose rapidly and consumers carried bags full of money just to purchase basic staples. The government of Zimbabwe was forced to issue a 100-trillion Zimbabwean dollar note at the height of the crisis. Foreign ...
Excessive printing of money by the government, in response to economic crises and fiscal mismanagement, led to hyperinflation rates reaching billions of percent, rendering the Zimbabwean dollar essentially worthless. The future of fiat money As technology advances, fiat money is increasingly becoming ...
If a government decides to turn on the printing presses, these fiat currencies quickly lose their values because there is nothing tangible that is backing their value. Look to Zimbabwe as an example of a country with a fiat currency that has essentially made all of their outstanding notes worth...
The real inflation on the ground is ~14%. The official numbers are all manipulated, FED decided to taper but to what extent ? They are buying 120 b worth /month, they may taper it down to 118/month :-). The market is happy, the FED is proven truthful the common people suffer ...
Even if demand for the dollar plummeted, the Fed could in principle (barring Zimbabwean levels of incompetence and corruption) keep burning money until a dollar is scarce enough to be worth the “right” amount. In addition to directly securing the value of the dollar, this capability also re...
and highly accurate is increasingly making digital money such as Bitcoin a viable alternative to government backed, national fiat currencies. In some nations, such as Zimbabwe and Venezuela for example, where inflation is rampant due to excessive government money printing and political unrest, cryptocur...
criticism suggesting that such a proposal amounts to “printing money” and thereby destroying the value of the currency. Some probably will even argue that this would put the US on the road to a fate much like Zimbabwe’s (for a good analysis of what’s actually happening in Zimbabwe, ...