Hyper Inflation in Zimbabwe
Submitted to: Mr. Nawaz Ahmed
2012
Macroeconomics Report “Inflation”
Hyper Inflation in Zimbabwe
MAHAM TASEER (BS37 3184) UMAIRZIA (BS37 3174) MUTTAYAB MASOOD (BS37 3190) SAAD SHEIKH (VS30 2532) GECO – 202 MACRO ECONOMICS
Submitted to: Mr. Nawaz Ahmed
2012
Macroeconomics Report “Inflation”
Hyper Inflation in Zimbabwe
MAHAM TASEER (BS37 3184) UMAIRZIA (BS37 3174) MUTTAYAB MASOOD (BS37 3190) SAAD SHEIKH (VS30 2532) GECO – 202 MACRO ECONOMICS
Contents
1. Introduction 2 Hyperinflation in Zimbabwe 2 Highest inflation rates in history 3 Causes of Hyperinflation in Zimbabwe 3 Inflation measurement: 3 Effects of Inflation: 4 2. Literature Review 5 3. Methodology 6 4. Comparison with Pakistan 10 5. Result / Discussion 12 Controlling Inflation 12 Monetary policy 12 Fixed exchange rates 12 6. Conclusion 13 7. Recommendation 14 Bibliography 15
1. Introduction
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.
Hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly
2012
Macroeconomics Report “Inflation”
Hyper Inflation in Zimbabwe
MAHAM TASEER (BS37 3184) UMAIRZIA (BS37 3174) MUTTAYAB MASOOD (BS37 3190) SAAD SHEIKH (VS30 2532) GECO – 202 MACRO ECONOMICS
Submitted to: Mr. Nawaz Ahmed
2012
Macroeconomics Report “Inflation”
Hyper Inflation in Zimbabwe
MAHAM TASEER (BS37 3184) UMAIRZIA (BS37 3174) MUTTAYAB MASOOD (BS37 3190) SAAD SHEIKH (VS30 2532) GECO – 202 MACRO ECONOMICS
Contents
1. Introduction 2 Hyperinflation in Zimbabwe 2 Highest inflation rates in history 3 Causes of Hyperinflation in Zimbabwe 3 Inflation measurement: 3 Effects of Inflation: 4 2. Literature Review 5 3. Methodology 6 4. Comparison with Pakistan 10 5. Result / Discussion 12 Controlling Inflation 12 Monetary policy 12 Fixed exchange rates 12 6. Conclusion 13 7. Recommendation 14 Bibliography 15
1. Introduction
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.
Hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly
Bibliography: Gripper, J. (2006). HyperInflation in Zimbabwe. Hanke, S. H. (2008). Zimbabwe from HyperInflation to Growth. Hanke, S. H. (2009). On the Measurement of Zimbabwe. Kairiza, T. (2009). Unbunding zimbabwe 's . Kramarenko, V. (2005). Zimbabwe: Challenges and policy options after HyoerInflation. Makochekanwa, A. (2007). A Dynamic Enquiry into the causes of HyperInflaton. Mcindoe, T. (april, 23, 2009). HyperInflation in Zimbabwe. Moyo, A. (2010). Effects of Hyperinflation on Zimbabwe.