Welcome to the world of price controls. Inflation is so bad in Zimbabwe, they have just released a $10,000,000 bill, but it isn’t even enough to buy a burger, let alone a side of fries:
Reserve Bank Governor Gideon Gono said in a statement the 10 million Zimbabwe dollars notes will be issued along with 1 million and 5 million Zimbabwe dollars bills.
Previously, the highest existing note, introduced last month, was for 750,000 Zimbabwe dollars.
The new 10 million note is the equivalent of about £2 at the dominant black market exchange rate. A hamburger at an ordinary cafe costs about 15 million Zimbabwe dollars (£3).
That hamburger has trebled in price this month amid shortages of bread, meat and most basic goods.
Zimbabwe faces an inflation rate of 25,000%. It used to be called the breadbasket of Southern Africa. That was before Robert Mugabe.
I wrote about the actions of Mugabe and the failure of foreign aid here. It is a stark reminder of what centralized planning can do to a prosperous country. Venezuela is suffering from shortages also. It isn’t unusual, but it is staggering that people still think this can work after so many examples of it failing.
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