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Hyperinflation In Zimbabwe

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.

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Hyperinflation In Zimbabwe

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  1. Hyperinflation In Zimbabwe By Adam Vitalone and Chelsea Marshall

  2. 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

  3. 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 dormant 05- Mugabe starts demolishing homes and shanites

  4. Economic issues in Zimbabwe • Increase in money not supported by growth and distribution of goods and services • The source of inflation is Zimbabwe's reserve bank • This causes imbalance in Supply and Demand • The monetary authority is borrowing money to pay for all of its expenses

  5. 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

  6. 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)

  7. GDP per Capita

  8. Unemployment Rate

  9. Other Interesting Facts Life Expectancy- women 33.5 yrs - men 37 yrs Literacy rate- adult 90% - women 86% Ethnic Groups- 98% African 1% Mixed and Asian <1% White

  10. What Zimbabwe Looked Like Zimbabwe Economics 2008

  11. Curing Hyperinflation According 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

  12. 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%

  13. Bibliography • http://www.cato.org/zimbabwe • http://www.indexmundi.com/g/g.aspx?c=zi&v=66 • http://www.worldstatesmen.org/Zimbabwe.html • http://www.usaid.gov/zw/economic_growth.html • https://store.cato.org/publications/development-policy-analysis/zimbabwe-hyperinflation-growth • http://atlasnetwork.org/wp-content/uploads/2009/05/cato_-_on_the_measurement_of_zimbabwes_hyperinflation13.pdf • Zimbabwe Economics 2008 • http://www.nytimes.com/2005/06/11/international/africa/11zimbabwe.html?pagewanted=all

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