Inflation Writ On a Grand Scale in Zimbabwe

A numismatic slant to the the outlandish hyperinflationry status of the Zimbabwean economy made the news in the UK recently, with an advertising award being granted to a South Afican advertising agency that used Zimbabwean banknotes issued under the good President Mugabe to illustrate the point that it was cheaper to print on banknotes than actual printing stock.

I recall anecdotal stories of householders burning German paper currency rather than firewood during the heady days of hyperinflation in the Weimer Republic of Germany (between 1922 and 1923), however this contemporary story will hopefully have many non-economists around the world (not just in Zimbabwe) sit up and take a more active interest in their personal finances. The recent spate of silly stories about the Australian 5 cent coin being scrapped miss the point in my opinion - I don't think a lot of people realize just how much money they lose year on year through the steady march of inflation. The loss of the five cent coin surely has to be the canary in the coalmine.