the economist

Zimbabwe’s Hyperinflation: The Correct Number Is 89 Sextillion Percent

Most press reports about Zimbabwe’s fantastic hyperinflation are off the mark – way off the mark. Even our most trusted news sources fail to get the facts right. This confirms the “95 Percent Rule”: 95 percent of what you read in the financial press is either wrong or irrelevant.

When it comes to the reportage about hyperinflation, there are no excuses. All 56 of the world’s hyperinflations have been carefully documented in “World Hyperinflations”. This record is available in the Routledge Handbook of Major Economic Events in Economic History (2013) and has been available online since 2012 at the Cato Institute.

The International Monetary Fund (IMF) is the main culprit, a prominent source of the faulty data. EvenThe Economist magazine has fallen into the trap of uncritically accepting figures pumped out by the IMF and further propagating them. It’s no wonder that there is a massive gap between the public’s perception and economic reality. A gap that, ironically, The Economist reports on this week

The Economist’s most recent infraction on Zimbabwe’s hyperinflation appeared in the May 2016 issue. The magazine claimed that the hyperinflation peaked at an annual rate of 500 billion percent. Where did this figure originate? You guessed it. That figure is buried in the IMF’s 2009 Article IV Consultation Staff Report on Zimbabwe.

2016: the “Year of the 1%” or the Year Poverty Fell to a New Low?

This past weekend, The Economist uploaded and shared a short video to its Facebook page called, “The year of the 1 percent.” The video shows a graph superimposed over the Earth seen from space, while a voice narrates, “2016 is set to be a more unequal world than ever before. For the first time, the richest 1 percent of the population will enjoy a greater share of global wealth than the other 99 percent.” The video has been viewed more than one hundred thousand times.

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Vote Now: Is Obama Failing?

Closing statements are posted at the Economist debate, “This house believes that Barack Obama is failing.” Currently, Obama leads in the voting by a bit less than the margin by which American voters oppose his health care plan. But there’s still time for a rally! So vote now.

I conclude my closing statement this way:

Debate: Is Obama Failing?

At the Economist website, I’m debating the question, “This house believes that Barack Obama is failing.” I’m taking the affirmative. Readers are allowed to vote, and the Economist’s typically left-leaning readers are voting for Obama by about the same margin that Americans are rejecting his health care plan. So feel free to mosey on over there, read both sides of the argument, and cast your vote. My bottom line:

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