Hyperinflation in Zimbabwe

In: Business and Management

Submitted By tantan
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Hyperinflation in Zimbabwe: An Economic Crisis
The Audience: As mentioned in a New York Time’s article, “Zimbabwe has been tormented this entire decade by both deep recession and high inflation, but in recent months the economy seems to have abandoned whatever moorings it had left” (Wines, 2006). This state of hyperinflation has caused the prices to soar to higher levels than ever making it harder for the citizens of the country to be able to consume necessary goods such as milk, bread, toilet paper. This report strives to aim towards the Zimbabwean government, taking a look at the way they have chosen to respond to this constantly increasing problem. The government will agree that this economic condition has been caused by their decision made way back in 2000 to print excess money and they continue to do so time after time, which has eventually resulted into depreciation of the currency. Also, the implementation of price controls causing a shortage in the supply of goods is another fact that the government cannot deny. However, the disagreement comes in when ways to eliminate hyperinflation are taken into account. The way President Robert Mugabe has been dealing with this situation has been ineffective and has caused the country to fall deeper and deeper into the financial crisis. The current government will disagree with this and try to defend their policies. To improve the economic situation of the country, the people of Zimbabwe will have to elect a new government that will put into effect new policies which will help take care of this crisis. To stop this financial epidemic in the country, things like linking the country’s currency to another one, change the national currency all together, lift up price controls are only some options that will be further explained in the following report.
Zimbabwe is a country with the highest inflation currently in the…...

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