Comments on: The price of a beer in Zimbabwe: $4,813,277 and rising, FAST! http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/ for students and teachers of Economics Wed, 08 Feb 2012 23:39:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: jenniferchoi http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4404 jenniferchoi Thu, 06 Mar 2008 05:17:13 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4404 The huge inflation in the country only reduced its the dollar value significantly. The inflation eventually depreciates the purchasing power of each dollars, just like what happened in Zimbabwe! The huge inflation in the country only reduced its the dollar value significantly. The inflation eventually depreciates the purchasing power of each dollars, just like what happened in Zimbabwe!

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]]> By: Sam Young http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4391 Sam Young Wed, 05 Mar 2008 08:23:36 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4391 This is one situation where saving does not help an economy... you can watch money depreciate in your hand by hundreds of dollars an hour... Germany faced a similar problem after the World Wars, especially World War II, and the German economy recovered, so it is possible to pull out of hyperinflation, but is it possible to do so without someone purposely "fixing" the economy? Can it correct itself over time or is it an endless cycle? This is one situation where saving does not help an economy… you can watch money depreciate in your hand by hundreds of dollars an hour… Germany faced a similar problem after the World Wars, especially World War II, and the German economy recovered, so it is possible to pull out of hyperinflation, but is it possible to do so without someone purposely "fixing" the economy? Can it correct itself over time or is it an endless cycle?

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]]> By: Hansen http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4372 Hansen Mon, 03 Mar 2008 00:17:28 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4372 Hahaha, in response to Tim's post, the opportunity cost of finding the correct change down to the dollar is greater than the change itself. The situation is pretty dire. With each new issuance of a bill, the whole population has to stand in line at the ATM or bank for hours just to get new bills. And yes, sticky wages does come into effect here I think. Hahaha, in response to Tim's post, the opportunity cost of finding the correct change down to the dollar is greater than the change itself. The situation is pretty dire. With each new issuance of a bill, the whole population has to stand in line at the ATM or bank for hours just to get new bills. And yes, sticky wages does come into effect here I think.

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]]> By: Trevor Sun http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4366 Trevor Sun Sun, 02 Mar 2008 21:39:37 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4366 wow, must be cool to hold a 10 million dollar bill but then again it must suck to have like no purchasing power with it. = = wow, must be cool to hold a 10 million dollar bill but then again it must suck to have like no purchasing power with it. = =

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]]> By: Cassy Chang http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4365 Cassy Chang Sun, 02 Mar 2008 21:30:36 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4365 wait...so wages don't change as fast as inflation right? that stinks. this reminded me of a photo of a man carrying stacks of money on baskets on either side of his bike...it was during war time i believe. wait…so wages don't change as fast as inflation right? that stinks. this reminded me of a photo of a man carrying stacks of money on baskets on either side of his bike…it was during war time i believe.

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]]> By: Jessica http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4357 Jessica Sun, 02 Mar 2008 20:27:48 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4357 Okay. I'm not sure if I want to laugh or cry here. What has the world come to. Oh but if i lived in Zimbabwe i would DEFINITELY cry. Haha but the $10,000,000 bill is kind of funny. So what exactly is the exchange rate? How much USD would it cost for a beer? Okay. I'm not sure if I want to laugh or cry here. What has the world come to. Oh but if i lived in Zimbabwe i would DEFINITELY cry. Haha but the $10,000,000 bill is kind of funny. So what exactly is the exchange rate? How much USD would it cost for a beer?

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]]> By: Annie Sung http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4355 Annie Sung Sun, 02 Mar 2008 20:27:08 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4355 Wow...at this rate, I wonder how fast the government is going to have to reprint their bills. I remember the example I heard in class on how people would rush to buy food in the morning of pay day before prices rise again in the afternoon...except this is just multiplied by thousands. Talk about being worth nothing. Wow…at this rate, I wonder how fast the government is going to have to reprint their bills. I remember the example I heard in class on how people would rush to buy food in the morning of pay day before prices rise again in the afternoon…except this is just multiplied by thousands. Talk about being worth nothing.

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]]> By: Michael Daily http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4350 Michael Daily Sun, 02 Mar 2008 19:33:47 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4350 Yeah I read that members of a country club would buy their beers before they played their game of golf because by the time their game ended the drinks would be like over a thousand dollars more. Haha, it is really just ridiculous. I have no idea how anyone could live like that. Yeah I read that members of a country club would buy their beers before they played their game of golf because by the time their game ended the drinks would be like over a thousand dollars more. Haha, it is really just ridiculous. I have no idea how anyone could live like that.

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]]> By: kevinhuang http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4329 kevinhuang Sat, 01 Mar 2008 19:57:10 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4329 That's not good :/ ... That's not good :/ …

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]]> By: Alex Goldman http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4320 Alex Goldman Sat, 01 Mar 2008 15:49:40 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4320 I'm sure to many Zimbabweans' surprise, being multi-millionaires isn't nearly as fun as it should be. I'm sure to many Zimbabweans' surprise, being multi-millionaires isn't nearly as fun as it should be.

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]]> By: Jo Lo http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4317 Jo Lo Sat, 01 Mar 2008 14:48:41 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4317 Does anybody know if people can use checks? Imagine if someone like Bill Gates goes there and decided to buy a car(highly unlikely), and he couldn't write a check. Imagine the amount of cash he would need. Does anybody know if people can use checks? Imagine if someone like Bill Gates goes there and decided to buy a car(highly unlikely), and he couldn't write a check. Imagine the amount of cash he would need.

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]]> By: Howard Lin http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4305 Howard Lin Fri, 29 Feb 2008 10:15:14 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4305 Perhaps this was due to the spiral effect as Mr.Welker mentioned in class, in which income rises which cause the cost of production to rise which means price rises for the product and its a continues cycle. Perhaps this was due to the spiral effect as Mr.Welker mentioned in class, in which income rises which cause the cost of production to rise which means price rises for the product and its a continues cycle.

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]]> By: Conrad Liu http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4297 Conrad Liu Fri, 29 Feb 2008 00:16:17 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4297 I actually laughed hard and long when I read this. Obviously, the nominal wage seems huge compared to the average American's wage. However, because the REAL wage is, in fact, VERY low, it results in the misleading idea that a 10,000,000 bill can get you a lot. I actually laughed hard and long when I read this. Obviously, the nominal wage seems huge compared to the average American's wage. However, because the REAL wage is, in fact, VERY low, it results in the misleading idea that a 10,000,000 bill can get you a lot.

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]]> By: Jeewon http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4290 Jeewon Thu, 28 Feb 2008 21:37:51 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4290 Isn't the Zimbabwe government aware that the money that it's producing is worth nothing...? Okay, the article says that the official exchange rate is 1 USD = 30,000 ZWD, but on the black market it is 1 USD = 1,500,000 ZWD. And these exchange rates are "grossly inaccurate" because there are constant dramatic changes. The price control body should really do something to halt the sharp price increases.. Isn't the Zimbabwe government aware that the money that it's producing is worth nothing…? Okay, the article says that the official exchange rate is 1 USD = 30,000 ZWD, but on the black market it is 1 USD = 1,500,000 ZWD. And these exchange rates are "grossly inaccurate" because there are constant dramatic changes. The price control body should really do something to halt the sharp price increases..

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]]> By: MichaelChow http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/comment-page-1/#comment-4284 MichaelChow Thu, 28 Feb 2008 20:11:55 +0000 http://welkerswikinomics.com/blog/2008/02/26/the-price-of-a-beer-in-zimbabwe-4813277-and-rising-fast/#comment-4284 Like what previous posts above me mentions this is quite merely simply a illusion of having such an amount in numerical terms. However this plays no effect what so ever in the purchase of goods in the nation since it is proved worthless compared to other currencies. Like what previous posts above me mentions this is quite merely simply a illusion of having such an amount in numerical terms. However this plays no effect what so ever in the purchase of goods in the nation since it is proved worthless compared to other currencies.

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