Zimbabwe Downfall

DOWNFALL OF ZIMBABWE ECONOMY F.Y B.com (Accounting & Finance) COMMERCE PROJECT BY - KEDAR BHOIR (07) VIKAS KHADE (23) MEET GALA (56)

ACKNOWLEDGEMENT

We would like to express our greatest gratitude to the people who have helped and supported us throughout the project. We are grateful to our Prof. Oberoi for his continuous support for the project, from initial advice and contacts in early stages of conceptual inception and through ongoing advice and encouragement to this day.
A special thank of us goes to our other teachers who helped us in completing the project and they exchanged their ideas, thoughts and made this project easy and accurate.
At last but not the least we want to thank our friends who appreciated us for our work and motivated us and finally to God who made all the things possible. Kedar Bhoir Vikas Khade Meet Gala

Contents

1. Introduction of Zimbabwe………………………………………………………………………….04
2. Inflation and Hyperinflation…………………………………………………………………..….06
2.1 Common Factors which have caused Hyperinflation in the past…….06
2.2 Difference between Inflation and Hyperinflation……………………….....06
3. Road to Hyperinflation and Dollarization……………………………………………………08
4. Effects of Hyperinflation…………………………………………………………………………….14
4.1 Before and During Hyperinflation…………………………………………………..15
4.2 Zimbabwe’s Inflation Nightmare…………………………………………………….16

4.3 Starving Billionaires………………………………………………………………………..17

4.4 Hyperinflation Consequences…………………………………………………………18

4.5 Impact on Economy……………………………………………………………………….19

4.6 Loan Sanctions by IMF .………………………………………………………………….20

4.7 Impact of Revaluation…………………………………………………………………….20

5. Timeline of Zimbabwe’s