ABSTRACT: Zimbabwe’s economic crisis originates from its struggle for independence in the 1970s. Military adventures and reckless spending led to exploding budget deficits, and the forced seizure of commercial farms almost brought the agricultural production to a halt. Zimbabwe entered into a state of hyperinflation, which culminated in a de facto dollarization of the Zimbabwean economy, made official in early 2009 by the Minister of Finance. Given all the hyperinflations of the past, the question to ask is whether the Zimbabwean experience is an isolated economic novelty; or is rather a repetition of the economic and political follies that have plagued some of the fiat governments of the modern world. This paper provides a detailed historical account of the economic crisis, which we will subsequently compare to other past hyperinflations, first and foremomst.
Zimbabwe, a country once so gripped by the madness of hyperinflation that the central bank could no longer afford paper on which to print practically worthless trillion-dollar notes, now has an altogether more modern problem: it is stuck in deflation.
R.I.P. Zimbabwe Dollar by Steve H. Hanke*Professor of Applied EconomicsThe Johns Hopkins UniversityandSenior FellowThe Cato Institute As I wrote on 25 June 2008, "Zimbabwe is in the late stages of a c
Zimbabwe’s tentative return to its own currency is getting a hostile reception from citizens, who fear a recurrence of the 500 billion percent inflation that plagued the southern African nation before