2008-10-03

How do you stop hyperinflation?

Zimbabwe FAQ - why the hyperinflation? how do they fix it? | Cape Town news:

So what is the best strategy forward for Zimbabwe?

That’s the trillion dollar question. However, we do have Bolivia as an example. In 1985, they eliminated hyperinflation within a few months by enacting the following measures:

* they linked their currency to a stable foreign currency (in their case, the United States dollar)
* they froze government spending
* they stopped printing currency
* they lifted all price controls
* they deregulated their economy
This information might be important in the near future.
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