Truemors
What happens, when a country just prints money, not covered by productivity.
Happend in Germany 1945, money wortless, new money the Deutsch mark, every
person got 40 DM to start. The Reserve Bank of Zimbabwe has introduced a $1,000 note, $10 trillion in the old value, to end cash shortages in the hyper-inflationary environment.
However, analysts said the new note -- which can only buy a loaf of bread -- will not ease pressure on cash shortages because of the ever-increasing prices.
"It will not make even a small impact. What we need in Zimbabwe is a clear change of policies, start production and then inflation will start easing up," said John Robertson, an economic consultant. "The zeros seem to be coming back no matter how often they slash them."
In August, Zimbabwe slashed ten zeroes on the currency; two years earlier the country slashed three zeros. The zeroes keep bouncing back in the country that has an inflation rate of 11.2 million -- the highest in the world.
Zimbabwe's agro-based economy has been on a free-fall for more than a decade now.
Since 2000, Zimbabwe's currency has been depreciating against major currency. It is trading around $350 Zimbabwean dollars -- $35 trillion in the old value -- against the U.S. dollar.
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