Dollarization of Zimbabwe Economy Appears To Vanquish Hyperinflation
I thought this might be of interest. It seems the general public have voted with their wallets and prices are finally beginning to stabilize in Mugabe land.
Rothbard in MES on hyperinflation as the ultimate limit to credit expansion.
“The public has rid itself of the inflation burden by its ultimate weapon: lowering the demand for money to such an extent that the government’s money has become worthless. When all other limits and forms of persuasion fail, this is the only way—through chaos and economic breakdown—for the people to force a return to the “hard” commodity money of the free market.”
Unfortunately, Zimbabweans have started to use dollars which are not “hard currency.”
Zimbabweans are at risk of going through another bout of hyperinflation in order to finally arrive at a “hard” commodity money - most likely gold.