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Comment by greenavocado

7 days ago

Exactly. The Zimbabwe model

Can totally happen when the people in charge are economically illiterate and surrounded by sycophants or crooks (I'm not sure which Mugabe was), demanding a wealth transfer that can't be funded by the actual economy.

Inflation can also happen when production goes down, not just when money supply goes up.

Now I don't claim to be an expert at economics, I'm just a software nerd like most here and may be wrong so take with a pinch of salt, but the things I've heard that are associated with stagflation include de-globalisation and supply chain shocks (e.g. a trade war with major partners), tariffs, and shrinking labor force (aging population not helped by a combination of low immigration and aggressive deportation).

  • To even begin to understand Mugabe you have to understand his very long and strong relationship with the Chinese military and the reasons why they invested so heavily in his posse.