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Could Less Paper Money Actually Help Mugabe?

Friday, July 4, 2008

The German printing company supplying many of Zimbabwe's new banknotes has agreed to halt shipments after a "political and moral assessment." Supposedly, high level pressure from the German government contributed to the move.

Without new paper money, the question is what will happen next in Zimbabwe's economic crisis. Might a reduced money supply actually slow the country's 165,000 percent inflation? If it did, who would this help more, average citizens, or the Mugabe-connected elite?

Any economists or Zimbabwe experts out there want to weigh in?