Hyper Inflation is the economic situation in Zimbabwe during Mugabea’s rule. It was in early 21st century that Zimbabwe started facing the problem of uncontrollable inflation. Hyperinflation was started reporting with an inflation rate of 623% in 2004. The next record was made when the inflation rate of the country crossed 1000% in the year 2006. IMF said that Zimbabwe has suffered the highest inflation in the world. By 2007, the inflation rate of the country has crossed the 3000% mark. Inflation rate was continuing in an uncontrollable manner in the country. In May 2007, Zimbabwe reported an inflation rate of above 3700%. The rates were at an upward trend since then. With an inflation rate of 231,150,888.87%, Zimbabwe’s economy surprised the whole world. “By March , inflation had touched 914 percent a year, at which rate prices would rise more than tenfold in 12 months.” (“How bad is inflation in Zimbabwe”, 2006) Inflation rate was not seemed to be stable at a particular rate; instead it was surging year on year.
The main reason for hyperinflation in Zimbabwe is the poor monetary policy of the government. The growth in the money of the country was not supported by corresponding growth in the output of goods and services. Apart from all these factors the central bank still kept on printing more money, thereby increasing the inflation further. “Zimbabwe’s hyper-Inflation is a result of the monetary authority irresponsibly borrowing money to pay all its expenses and funding quasi-fiscal activities (which are normally left to Central Government).” (Muponda, 2009) A study shows that it is not the drought or foreign country interruption that destroyed the country’s economy, but misrule by President Mugabea. (Clemens & Moss, 2005) The government was also following a fixed exchange rate policy. Also the government intervention and regulations were higher in Zimbabwe, making it non-conducive for business activity. Reduced ...
Cite this document
(“Macroeconomics: Inflation Rates in Zimbabwe Under President Robert Term Paper”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/396801-macroeconomics-inflation-rates-in-zimbabwe-under-president-robert-mugabes-rule
(Macroeconomics: Inflation Rates in Zimbabwe Under President Robert Term Paper)
“Macroeconomics: Inflation Rates in Zimbabwe Under President Robert Term Paper”, n.d. https://studentshare.net/miscellaneous/396801-macroeconomics-inflation-rates-in-zimbabwe-under-president-robert-mugabes-rule.
This is in terms of the quality of life led by the citizens. Some critics however have found that the use of national income data is not 100 percent reliable indicator of standard of life (Miller, 2011). The business cycles in an economy would influence standard of living.
The continued exploitation of Indian resources in the textile industry shattered the industry, massively affecting the Indian economic status. In other words, the British rule led to de-industrialization of the Indian textile industry, which eventually resulted in high unemployment rates, low income, poverty, and hunger among the Indian population.
Since the search for the cure is still ongoing, the only method that the health departments worldwide are employing is prevention and management of the disease. In Zimbabwe for instance, the fight against HIV and AIDS faces unique challenges because of culture, and the economic situation evident among the population.
The BOP consists of two accounts; the capital account and the current account. The capital account records all the transactions between the resident of a country and the rest of the world whereas the current account records imports and exports of tangible goods and intangible services along with the unilateral transfers.
To have an imperative explanation of the concept, it is prudent to define the unembellished concept ‘Foreign Direct Investments.’ It refers to the process whereby the populace of a country acquires the full control and ownership of assets with the sole purpose of controlling production, distribution and other activities of a firm in another country.
The paper also discusses Cochrane’s key claim and comments on that key claim. It asserts that on balance, there is some weight to the argument of Cochrane relating to the threat of inflation from sustained fiscal deficits and loss of lender confidence in American debt leading to the government needing to fund deficits by printing dollar.
The Economists Dictionary of Economics describes Macroeconomics as "The study of whole economic systems aggregating over the functioning of individual economic units. It is primarily concerned with variables which follow systematic and predictable