Zimbabwe is the first country not involved in a war to have two bouts of super – inflation in under ten years. The crises of 2008 were one of over accumulation, too much money chasing too few goods. Today’s crisis is a contradictory crisis of under.
Zimbabwe is in a recession with zero aggregate demand and no productivity. Everything being equal, recessions reflect stagnation and low inflation (stagflation).
That we have hyperinflation in a recession is a unique feat of failure. An unprecedented act of incompetence and misgovernance.
The short term solution is to urgently dollarize. There are no fundamentals to sustain a local currency.
More urgently the political crises need a soft landing. Without this we will protect our people The right to peacefully confront is guaranteed in s 59 and 67 of the constitution.
FULL THREAD: Zim's Hyperinflation While Experiencing a Recession Is A Unique Feat Of Failure - Biti
