Friday, July 11, 2008

Interesting Anecdote on Inflation

James Siminoff, the CEO of Phonetag, writes a great blog. I really liked this little anecdote he had on Zimbabwe's inflation rate, which is in the 1,000%'s.

It seems as though the money is depreciating so fast, the country needed a huge influx of paper to keep printing enough money to pay the army. A German country supplied the paper and recently refused to sell it to the country. Now, the dictator, Mugabe, won't be able to pay the army and he may face an uprising. Very interesting how something so small could make such a difference.