Hyperinflation in Zimbabwe

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Hyperinflation in Zimbabwe
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20th Century Timeline
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21st Century Timeline
State of disaster declared as worsening food shortages threaten famine. Government blames drought, the UN's World Food Programme says disruption to agriculture is a contributing factor.
Finance Minister Simba Makoni publicly
acknowledges economic crisis, saying foreign
reserves have run out and warning of serious food
shortages
5/2006 Year-on-year inflation exceeds 1,000. New
banknotes, with three zeros deleted from their
values, are introduced in August.
Squatters seize hundreds of white-owned farms in
an ongoing and violent campaign to reclaim what
they say was stolen by settlers
100-billion-dollar banknote is introduced in response to official year-on-year inflation rate of 2 million per cent.
Warnings of power cuts for up to 20 hours a day
while electricity is diverted towards
agriculture.
45-day countdown for white farmers to leave their
land begins, under terms of a land-acquisition
law passed in May
9/2006 Riot police disrupt a planned
demonstration against the government's handling
of the economic crisis. Union leaders are taken
into custody and later hospitalized, allegedly
after being tortured.
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Interest Rates

• Interest rates reached 160, and the government
  refused to devalue the Zimbabwean dollar. Instead
  the government artificially pegged the exchange
  rate at the level that the market could not
  justify.

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Whats Next

• Since Zimbabwe can not afford to buy the paper to
  print its currency, a severe cash shortage
  occurred.
• Mugabes opposition brokered a power-sharing deal
  this summer.

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Recommendations

• -Stop printing money entirely.
• -Freeze government spending.
• -Lift all price controls.