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Sunday, July 29, 2007

Mugabe economic policy: need cash, just print it

Shocking that the official rate of inflation is only 4500%.

The official Herald newspaper reported that Mugabe told a meeting of local council members that they should put more pressure on government ministers to improve services.

"Where money for projects has not been found, we will print it," Mugabe was quoted as saying.

The printing of money is generally regarded as a recipe for inflation -- which is officially at 4,500 percent in Zimbabwe, though private economists estimate it to be at least twice that high. The government last month ordered sweeping price cuts of about 50 percent, accusing store owners and businesses of fueling the inflation.

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