Zimbabwe central banking: model for the US Fed
Brought to my attention by an HBL’er:
Dr. G. Gono, Governor of the Reserve Bank of Zimbabwe, has these comments on the comparison of Zimbabwe national banking and US and UK federal banking policies:
1.15 As Monetary Authorities, we have been humbled and have taken
heart in the realization that some leading Central Banks, including those in
the USA and the UK, are now not just talking of, but also actually
implementing flexible and pragmatic central bank support programmes
where these are deemed necessary in their National interests.1.16 That is precisely the path that we began over 4 years ago in pursuit of
our national interest and we have not wavered on that critical path despite
the untold misunderstanding, vilification, and demonization we have
endured from across the political divide.
I believe Zimbabwean inflation has hit 100,000% this year, and the government’s recently introduced $10 million dollar note won’t even buy you a hamburger in Harare.
Bernanke, are you reading this?
Update May 16th: My bad, the above data was quite obsolete. The Zimbabwean Central Bank just released a $500 million dollar note (worth $2 in the US); the $10 million dollar note didn’t even merit mention among useful denominations (probably because it’s only worth about four cents). Inflation is now estimated to be 165,000%.
Update May 29th: Control breeds control, evil leads to evil. Comic here.
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