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Fighting inflation with force

Over the last few months, the official inflation rate in Zimbabwe has gone past 4,000% and its the highest in the world but over the past fortnight another development may mean that it will go down a little bit.

This is because of the introduction of the so-called 'inflation police' who have been going into shops and ordering prices to be reduced mostly by half and the prices are reduced on the spot.

The interesting bit is that the moment the prices are reduced, swarms of shoppers invade the shops and buy almost everything in the shop leaving the shop empty.

I have been reading that that some that people are buying goods like shoes that they do not need at all just because the prices have plummeted and you can't blame them in a country where prices are known to go up on a day to day basis.

Fighting inflation with this inflation force is one of the short-term economic or political strategies that you see from time to time as the Zimbabwe government tries to find ways of mending the economy that more or less doesn't exist anymore.

Its also interesting to see how far this will go because already some shops have now no reason to stock goods that they will sell at give-away prices and therefore in the end the consumer has nothing to buy.

As said before what's needed are long-term solutions to the problems that besiege the southern African nation and not these short term solutions that will just give rise to yet other problems.

Lets wait and see what the inflation figure will be at the end of this month.

These are sort of short-term populist strategies that are the cause of most of the problems in Zimbabwe. This is another case where the govt looks at one side of the coin and forgets to look on the other side to see what the consequences are going to be. Now that shopowners see no reason to sell anything and hence the empty shops, so what has this policy achieved? The whole economy needs to be fixed but most importantly and I know nobody will do anything about it - the cause of the problems.

Tafi, I will not be surprised to see the policy reversed soon. I think its a short-term measure meant to reflect attention away from the economic mess.

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