Analysts say the government is making strenuous efforts to stabilise the economy, running a budget surplus for the first time in years and refraining from printing money, a key cause of the hyperinflation of 2008.
Last month, the central bank raised interest rates to 50% to protect the local currency and has made transactions using the US dollar illegal.
Why not drop the local currency and use the US$ instead? Inflation would stop immediately.
The answer is of course:
“The trouble with Zimbabwe is a predatory elite that prioritises personal accumulation over public interest and service. Comprised of top ruling party officials, their relatives and friends”
Olson’s stationary bandits don’t always farm the population effectively…..