Hyperinflation In Zimbabwe
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Hyperinflation In Zimbabwe By Adam Vitalone and Chelsea Marshall
description
Hyperinflation In Zimbabwe . By Adam Vitalone and Chelsea Marshall. Historical Timeline. 1920 known as Rhodesia annexed by UK in 1923 1961- white favored constitution 1965- gov't declared independence 1979- UN sanctions and guerrilla uprising resulted in free elections. - PowerPoint PPT Presentation
Transcript of Hyperinflation In Zimbabwe
Hyperinflation In Zimbabwe
By Adam Vitalone and Chelsea Marshall
Historical Timeline
• 1920 known as Rhodesiaannexed by UK in 1923• 1961- white favored constitution• 1965- gov't declared independence• 1979- UN sanctions and guerrilla uprising
resulted in free elections
Mugabe and His Country
'80-'87 Mugabe is Prime Minister becomes Pres in '87
2000- land redistribution causes large exodus of white farmers
2002- election rigged by mugabe'02-present- Mugabe still President
- corruption rampant- policy making is
dormant05- Mugabe starts demolishing homes and shanites
Economic issues in Zimbabwe
1. Increase in money not supported by growth and distribution of goods and services
2. The source of inflation is Zimbabwe's reserve bank
3. This causes imbalance in Supply and Demand
4. The monetary authority is borrowing money to pay for all of its expenses
Zimbabwe Today
• ‘98-’08 there was an economic contraction
• '07- LET HYPERINFLATION BEGIN!!
• Economic Problems- infrastructure and regulatory deficiencies- ongoing indigenization pressure- Policy uncertainty- large external debt burden- insufficient formal employment
Most Current & Severe Statistics
• GDP 7,474,000,000• Pop. 12,571,454• Unemployment 98%• GDP per capita $500• Avg inflation 1000%• Highest inflation 79.6 billion% (2nd all time)
Zimbabwe's Hyperinflation
Date Month-over-Month Inflation Rate (%)
Year-over-Year Inflation Rate(%)
Dec-07 240.06 66212.30
Jan-08 120.83 100580.16
Feb-08 125.86 164900.29
Mar-08 281.29 417823.13
Apr-08 212.54 650599.00
May-08 433.40 2233713.43
Jun-08 839.30 11268758.90
Jul-08 2600.24 231150888.87
Aug-08 3190.00 9690000000.00
Sep-08 12400.00 471000000000.00
Oct-08 690000000.00 3840000000000000000.00
GDP per Capita
Unemployment Rate
Other Interesting Facts
Life Expectancy- women 33.5 yrs- men 37 yrs
Literacy rate- adult 90%- women 86%
Ethnic Groups- 98% African1% Mixed and Asian<1% White
Curing HyperinflationAccording to an article by Foreign Policy
hyperinflation in Zimbabwe has been eliminated
• Elimination of Zimbabwe currency• Money supply has been cut by 1000%• Capacity utilization in the economy is up
from 4 percent to nearly 50 percent• GDP was about 4% this year and is
expected to raise to 6%• Now that inflation is over the economy levels
are returning to the natural rate
Summary of Issue·
• The government printed money to finance their expenses
• Increase in money is not supported by demand of goods and services
• President redistributed land to white farmers causing high unemployment
• Elimination of Zimbabwe currency reduces inflation by 1000%
Bibliography1. http://www.cato.org/zimbabwe2. http://www.indexmundi.com/g/g.aspx?c=zi&v=663. http://www.worldstatesmen.org/Zimbabwe.html4. http://www.usaid.gov/zw/economic_growth.html5. https://store.cato.org/publications/development-policy-a
nalysis/zimbabwe-hyperinflation-growth6. http://atlasnetwork.org/wp-content/uploads/2009/05/cato
_-_on_the_measurement_of_zimbabwes_hyperinflation13.pdf
7. Zimbabwe Economics 20088. http://www.nytimes.com/2005/06/11/international/africa/
11zimbabwe.html?pagewanted=all
