Hyperinflation destroys
The Zimbabwean central bank has to print $200 million notes days after creating the $100 million note! Hyperinflation at its worst has led to riots, destruction and death. This kind of out-of-control monetary creation destroys societal values. Prices change daily. Ludwig Von Mises wrote about this extensively...having witnessed it in Pre-WW2 Germany.
This headline is wrong, however. CNN does not understand economics. Zimbabwe's government created the hyperinflation, and perpetuates it by printing more and larger bills.
The lesson, is that bureaucracies do not know the "proper" amount of money, and should not be in charge of its supply. Inflation slowly (and sometimes quickly) undermines the purchasing power and savings of the people who hold it. ZImbabwe will suffer for generations.
http://www.cnn.com/2008/WORLD/africa/12/06/zimbabwe.currency/index.html


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