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Prof Steve Hanke's no hyperinflation in Zim comment angers Biti

by David Mwanza
11 Oct 2020 at 07:07hrs | Views
MDC Alliance Vice President, Tendai Biti, leading that party's Economic Portfolio is this week set to meet representatives of the US Embassy in Harare to express that party's dismay over positive social media comments on the country's economic outlook by United States of America's Johns Hopkins University Economic lecturer, Prof Steve Hankes.

Biti has in the past heavily relied on Prof Hanke to discredit the country's economic reforms being implemented by the Second Republic.

Prof Hanke's sudden positive comments on Zimbabwe's economic policies took Biti offguard leaving him to cry out for the intervention of the US Embassy Harare.  

Prof Hanke recently rubbished as nonsense claims by Zimbabwean pseudo economist and opposition politicians that the country was hyperinflating.

He attributed the significant drop in inflation to the economic measures being implemented by the New Dispensation.

"@ZimbabweMail states that Zimbabwe is experiencing "significant hyperinflation". Absolute nonsense. I measure Zimbabwe's inflation with high-frequency data and sound science each day. Today, Zimbabwe's inflation is at an elevated 455%/yr. But, that's nowhere near hyperinflation.

""Experts" play fast and loose with the term "hyperinflation". Every day, we read that Iran, Zimbabwe, and Venezuela are hyperinflating. Wrong. Venezeula and Lebanon are the only countries experiencing hyperinflation today."

He added: "The Zanu PF's crackdown on underground currency trading has caused inflation in Zimbabwe to drop significantly. Using high frequency data and sound science, I measure Zimbabwe's inflation to be 452 per cent per year, almost 300 percentage points lower than the official rate."

Biti's move comes at a time when Cabinet is at an advanced stage to enact into law the Patriotic Act. He has in the past played an active role in calling for sanctions against the country.

Source - David Mwanza