Combating Inflation

Posted on July 9, 2007
Filed Under Uncategorized |

Here’s one way to do it:

The government ordered that the prices of many goods be cut in half, in order to tackle the world’s highest rate of inflation – more than 3,700%.

I was a little disappointed that it’s not as creative as Chavez’ inflation plan, which centered on taking 3 zeros off the currency (in other words, a $1,000 bolivar bill would now be a $1… I’m not making this up).

It should be noted that in the case of Venezuela the currency "revaluation" didn’t work and inflation is still up in the stratosphere, while in the case of Zimbabwe I think I’m on safe ground in suggesting that forcing merchants to sell goods below cost isn’t a remedy for inflation, and neither is putting them in jail when they refuse.

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