Hyperinflation in Zimbabwe was caused by land reforms that decreased agricultural productivity, loss of export revenue, and increased money supply. This led to extremely high inflation rates, peaking at 231 million percent in 2008. Effects included prices doubling every 24.7 hours, 80% unemployment, and severe shortages of food and basic goods. To control hyperinflation, Zimbabwe suspended its currency in 2009 and now uses more stable foreign currencies like the US dollar.

1. A project by
Connel Fernandes
Vinayak Bhosle
Gaurav Singh
Vinesh Jaiswal
Akshay Rajput
Nitesh Prasad
Rohil Sanil
Hyperinflation in Zimbabwe

2. WHAT IS INFLATION ?
 The rate at which the general level of
prices for goods and services is rising,
and, subsequently, purchasing power is
falling. Central banks attempt to stop
severe inflation, along with severe
deflation, in an attempt to keep the
excessive growth of prices to a minimum.
http://www.investopedia.com/terms/i/inflation.asp#ixzz1hjMWR6FE

3. WHAT IS HYPERINFLATION ?
 Extremely rapid or out of control
inflation. There is no precise numerical
definition to hyperinflation. Hyperinflation
is a situation where the price increases
are so out of control that the concept of
inflation is meaningless.
http://www.investopedia.com/terms/h/hyperinflation.asp#ixzz1hjNCku1P

4. CAUSES OF HYPERINFLATION IN
ZIMBABWE
 Land reforms
 Fragmentation of land
 Commercial farming to community farming
 Loss of agricultural productivity
 Scarcity of food
 Loss in export revenue
 Repayment of the IMF Loan
 Increase of money supply
 Participation in DRC war
 Increased scarcity of food and oil
www.cato.org/zimbabwe/hyperinflation

5. CAUSES OF HYPERINFLATION IN
ZIMBABWE
 Escalation of cost of production
 Price control for more than 50% of the products
 No incentive for production
 Thus, capital deccumulation
 Shutdown of industries
 Loss of confidence
 Escalation of unemployment
 Rampant black marketing
 Prices soar higher
 Further increased money supply
www.cato.org/zimbabwe/hyperinflation

6. Thus the above reasons lead
ZIMBABWE to a dangerous
situation known as

7. RISE OFINFLATION in
ZIMBABWE
 The below chart self explains the rise of
INFLATION rate in ZIMBABWE
http://www.google.co.in/#sclient=psy-
ab&hl=en&source=hp&q=hyperinflation+in+zimbabwe&pbx=1&oq=hyperinflat&aq=2&aqi=g4&aql=&gs_sm=e&gs_upl=0l0l1
l248l0l0l0l0l0l0l0l0ll0l0&bav=on.2,or.r_gc.r_pw.r_cp.,cf.osb&fp=344adf6de4d60025&biw=1360&bih=673
Year Inflation Issue of note Value of
correspondin
g ZIM $
2001 112.1 5 Z$ 20000
2002 198.93 % Z$ 10000000 4USD
2003 598.75 % Z$ 100000000 1.20 USD
2004 132.75 % Z$100 milliion
2005 584.84 % Z$ 250 million 2 USD
2006 1281.11 % Z$ 500 million
2007 66212.3 % Z$100 billion
2008 231150888.87
%
Z$ 20.50, 100
trillion
3.75 USD

8. EFFECTS OF
HYPERINFLATION
Once 1 zw $ = i.59 us $ but latter on in 2008 it
came to
500 billion zw $ = 2 us $
Prices in Zimbabwe in November 2008 rise in
every 24.7 hours
Major exporter of tobacco and maze became net
importer.
80% of population is unemployed
Life expectancy in adult in 1990 – 60 and as of
now it is 37.
60% of Zimbabwe's wild life died since 2000
FDI is almost nil in Zimbabwe which is the major
indicator in growth of any nation.
Prices in Zimbabwe raised to 64 times from 7th
th

9. PRESENT SITUATION IN
ZIMBABAWE
At the time of independence there were about 1%
population of whites holding 70 % of countries
commercial capital
In 1975 there were around 296000 whites where
as in 1999 it was around 120000 and in 2002 the
number was less than 50000
At present black people make 98% of population.
Government spending is 56.4% of GDP.
Because of use of other stable currencies the rate
of inflation
has reached almost to 0-3% ,but the
consequences of this was that now the street

10. MEASURES TAKEN TO CONTROL
HYPERINFLATION
 More over in starting 2009 on 16th January govt.
planned to
Issue notes of greater denomination such as 10T
,20T, 50T,
and 100T.zw $.
 Zimbabwe dollar was suspended on 12 April 2009
And use of more stable currency was allowed such
as us$,
African rand euro .
 On July 30th 2008 the governor RBZ announced
that 10
Zeros will be removed from Zimbabwean dollar.

11. BIBLIOGRAPHY
 http://www.investopedia.com/terms/i/inflation.asp#ixzz1hjMWR6FE
 www.newzimbabwe.com/pages/inflation180.17386.html
 regmankiw.blogspot.com/2006/05/hyperinflation-in-zimbabwe.html
 http://www.google.co.in/#sclient=psy-
ab&hl=en&source=hp&q=hyperinflation+in+zimbabwe&pbx=1&oq=hyperinflat&a
q=2&aqi=g4&aql=&gs_sm=e&gs_upl=0l0l1l248l0l0l0l0l0l0l0l0ll0l0&bav=on.2,or.r_
gc.r_pw.r_cp.,cf.osb&fp=344adf6de4d60025&biw=1360&bih=673
 www.hoax-slayer.com/zimbabwe-hyperinflation.html
 http://www.investopedia.com/terms/h/hyperinflation.asp#ixzz1hjNCku1P
 http://operatorchan.org/s/res/23689+50.html
 www.cato.org/zimbabwe/hyperinflation