Zimbabwe Hyperinflation: A Brief Overview of What Happened

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This presentation provides a brief overview of what happened during the Zimbabwe hyperinflation episode of 2008. A mix of political corruption, reckless government spending, low economic output, ridiculous monetary policy, and egregious debt monetization led to the downfall of Zimbabwe's national currency. This presentation explains why.

Key Terms:
Zimbabwe
Zimbabwe dollars
Zimbabwe hyperinflation
Hyperinflation in Zimbabwe
Buy Zimbabwe dollars
Buy Zimbabwe currency

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Zimbabwe Hyperinflation: A Brief Overview of What Happened

  1. 1. A Brief Overview of What Happened
  2. 2. • • • • • Zimbabwe was settled by the British in 1890 It was first known as “Rhodesia” Land fights between colonial settlers and nationals from 1890-1979 Zimbabwe gained independence in 1980 Zimbabwe became the “bread basket of Africa”
  3. 3. • • • • Zimbabwe’s Independence Day: April 18, 1980 President Mugabe won against the “neo-colonialists” Mugabe instituted a massive series of land reforms Government spending began to get out of control
  4. 4. Mugabe’s land reform program expropriated land from the hands of experienced, multi-generational farmers into the hands of largely untrained farmers, crippling economic output
  5. 5. • • • • Loose monetary policy characterizes Mugabe’s tenure Reckless government spending and debt monetization Egregious corruption among the upper ranks Multiple questionable authoritarian policies
  6. 6. • Excessive money creation to finance wars in the Congo • Egregious self-dealing and institutionalized corruption • Low economic output + excessive money printing = hyperinflation • The government did nothing to curb the inflation
  7. 7. • • • • Zimbabwe currency were originally Z$20, 10, 5 & 2 As inflation increased, new denominations were needed New denomination announcements continually increased Outlandish denominations of Z$20, 50 & 100 trillion were created
  8. 8. • Zimbabwe Dollars quickly became worthless • They are no longer used as official currency (as of 2009) • You can buy Zimbabwe currency online as a novelty or collectible item
  9. 9. For more info visit: http://buyzimbabwedollars.com

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