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Inflation in Zembabwe

In inflation about 2008 in Zimbabwe, Zimbabwe was hit by the hyperinflation not to examine a kind in history of approximately 230,000,000% of annual inflation rate. Therefore what's called 100 trillion Zimbabwe greenbacks was really used.

Process

Increase in money supply

One of the causes that became the inflation includes increase in money supply. The money supply is the supply of the currency. In other words it caused the inflation that quantity of currency which circulated in the country increased remarkably. Zimbabwe published the dollar of the currency of Zimbabwe for correspondence and the working-out of the election expense from a worker to the pay claim for 2-3 years to boil immoderation. Therefore prices will extremely rise.

Policy of the Zimbabwean government

Another cause that became the inflation includes the policy of the then Zimbabwean government.

The forced requisition of the farmland

There are many economic policies commented that it was wrong of the Mugabe Administration, but is the forced requisition of the farmland where one was performed from 2000 through 2001. By the agriculture in Zimbabwe before it, a white was a landowner, and the black consisted of relations called a field hand. The Mugabe Administration legalized, blacks "took farmland away" from a white landowner to treat a black well. In this way, many white landowners have escaped abroad because a black consented tacitly to taking farmland away from a white by power. Although I got back only land, the black does not know the know-how of the agriculture very much. Thereafter the farm productivity in Zimbabwe greatly decreases, and fold it without enough food, and prices will extremely rise.

Forcing transfer of stocks

The stocks compulsion transfer bill of the foreign company via the Zimbabwean assembly confused economy more, and the inflation let you progress more. This bill was a thing of the contents to have to half transfer the above to a Zimbabwean black forcibly of the stocks of the foreign firms which went into Zimbabwe. Then the foreign company withdrew all at once from Zimbabwe because I could not conduct a business. The existence of the foreign firm disappears in this, and the lack of Zimbabwean supplies worsens more.

Making price of everything half

There was a price control law to have done progress of the lack of supplies and the inflation conclusively. As for this, the government "made the price of almost all products, services half price as an anti-inflation measure forcibly". However, deficit just go bankrupt because the company (maker, retail store) does not become the profit even if I let you sell for half price forcibly. Many shops were keeping it in the warehouse without selling a product, but I did the safekeeping of such a product if illegal and might arrest you when I violated it. In this, the company produces products, and I lay in stock, and there is not the thing, too. A brake did not work for the inflation after all because bankrupt companies occurred in a row, and the economy of Zimbabwe was confused more.

Afterwards

In 2009, a policy called the redenomination was performed, and the expensive paper money such as 100 trillion Zimbabwe dollar disappeared. Furthermore, the dollar that was the currency of the country of Zimbabwe is abolished till then in 2015. And I introduce the U.S. dollar and a South African land as a circulation currency, and the economy of Zimbabwe will be more stable than the past.

Resignation of President Mugabe

The coup d'etat by the Zimbabwean military happened in November, 2017. And President Mugabe expressed resignation. It is thought that ruling party having begun to take the dismissal procedure although he said, the beginning "is not a thing threatening my situation that the recent movement is a leader of the countries, and is the Commander in chief of the military".