Zimbabwe Dollar Is No More

What has been a de facto reality for some time now has become official: The Zimbabwe dollar has been completely destroyed and annihilated.

This is hardly something to shed tears over. The interesting question is how the Zimbabwean government will finance itself now that it can't print money anymore. Well, I guess we'll find out soon enough....

Given the current economic orthodoxy that inflation is impossible as long as unemployment is high and capacity utilization is low, it is worth noticing that capacity utilization in Zimbabwe was only 20% when it suffered from the hyperinflation that destroyed the Zimbabwe dollar.