Monday, February 8, 2010

Zimbabwe Prices Fell 7.7% in 2009 From Hyperinflation (Update1)

Prices in Zimbabwe fell by 7.7 percent last year after abolishing national currency and switching to dollars to decrease the inflation rate of hundreds of millions. Zimbabwe started using US dollars in december 2008. Inflation peaked to more than 500 billion percent before the government switched to US dollar.
Posted by at

2 comments:

  1. HairongFebruary 8, 2010 at 2:22 AM

    Once started, hyperinflation is very hard to stop or control. In order for the government to control hyperinflation and stop printing money, it can increase taxation and/or decrease government expenditure.

    ReplyDelete
  2. JohnFebruary 8, 2010 at 9:08 AM

    One of the issues for Zimbabwe or any other country that chooses to switch to a foreign country is that they completely give up control on the money supply. They will now have only fiscal policy to control the economy instead of fiscal and monetary.

    ReplyDelete

Subscribe to: Post Comments (Atom)