ONE grows weary of these meaningless, thumb-sucking inflation projections from the Reserve Bank — have they no shame? From an original prediction of below 100% by December we are now ever optimistically told a peak in the future of 1 200% (a figure many believe we already have passe
d), down to 400% by December and below 50% by June next year!
This is not economics — it is crystal ball gazing at it worst.
Perhaps they also see a “tall, dark, handsome stranger” coming to the economy’s rescue….
Finally, whatever the negative effects on inflation from printing larger denominations in our hyperinflationary economy, what is the use in wasting money printing, as the country’s largest denomination, a “burial” cheque that at $100 000 is worth less than US50c on the parallel market? If they truly want to dampen inflation, would they not be better served by reducing the printing of money to subsidise government’s ravenous appetite, rather than by punishing the people instead — by excessively lagging with their review of our denominations?
Give us a Break,