Renowned American economic analyst Steve Hanke says Zimbabwe’s money supply (M2) is growing at a feverish rate ~1761percent per year.
That’s ~63 times Hanke’s Golden Growth Rate, a rate consistent with hitting Reserve Bank of Zimbabwe’s target inflation of 13 percent per year.
“As a result, today, I measure Zimbabwe’s inflation at a BLISTERING 1191%/yr,” he says.
Apparently, huge money supply is not economically sustainable as it drives inflation.
Reserve Bank of Zimbabwe governor John Mushayavanhu recently disclosed that he was not going to introduce bigger denominations of the local currency.
Zwnews
