Thursday, June 24, 2010

Dollarization in Zimbabwe

Having lived in Southern African for a number of years when I was younger, I have more than a passing interest in the economic crisis that is Zimbabwe. As I noted early last year, there were two policy moves there last year that were very promising: (1) Zimbabwe was abandoning the production of its own currency and (2) it was allowing foreign currencies to be used as legal tender. The hope at the time was that these developments would make life more bearable there, as it would bring an end to the hyperinflation and start allowing a functioning medium of exchange to emerge. Here is a video clip that shows how life has improved since these changes took place:

Here is a link to another video clip that shows how hard life was right about the time these changes took place. In case you missed it, here is my post on the extent of the Zimbabwe hyperinflation and here is my post on the $100 trillion bill in Zimbabwe.

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