Zimbabwe Should Not Have To Suffer This Way

Zimbabwe should not suffer in this way In recent years, Zimbabwe tends to increase violence due to government corruption. Human Rights Watch (HRWO) (Human Rights Watch) often reports on individual accounts where landowners and workers are beaten, plundered, threatened and persecuted. These terrorist acts are the product of the current military coup, known as Zanu-PF, and carefully planned by veterans in the Zimbabwe Independence War.

Another country with the same problem is Zimbabwe in Africa. After decades of corruption, war, destabilization, their economy encountered infinite problems. In an attempt to solve the economic problem ten years ago, the Central Bank of Zimbabwe began printing money and achieved predictable results. Zimbabwe's inflation rate for 2007 was 24,411% per year. By 2008, the situation got worse and the government stopped tracking inflation (experts noted that the annual inflation rate reached 213 million in July last year and then reached 79.6 billion in November ). The government finally acknowledged that the currency was worthless, then gave it up and started using the dollar and South African land. This did not solve the problem with them.

In 2008, Zimbabwe experienced the second serious overinflation event in history. Zimbabwe's annual inflation rate peaked in November 2008, reaching 89.7% (10 ^ 21)% of gender. After that, Zimbabwe also experienced hyper inflation today. Zimbabwe's annual inflation rate is now 348%. Zimbabwe has officially confirmed the 58 th overinflation event. This episode was added to the Hanke-Krus World hyper inflation table first published in the prestigious Routledge Economic History Major Event Handbook (2013).

During the hyperinflation event in Zimbabwe (2007 - 2008), the Reserve Bank of Zimbabwe could not accurately measure inflation. When hyperinflation events occur, the only viable and reliable way to measure inflation is to use purchasing power parity (PPP). To do this we need data on the exchange rate between the local currency and the stable international currency. This can not be realized in Zimbabwe. The Zimbabwe dollar is not trading on a systematic exchange reporting exchange rate, and the use of the black market exchange rate is unrealizable.

The resulting Zimbabwe RMB / Pound exchange rate will be converted to Zimbabwe Dollar / US Dollar. At the US dollar rate, I will multiply Zimbabwe / pound exchange rate by GBP / USD. The dollar exchange rate creates the so-called former mutual implicit exchange rate (OMIR). By using OMIR as the exchange rate between the Zimbabwe dollar and the US dollar, PPP is used as the last loop needed to calculate the inflation rate. When President Robert Mugabe's party, ZANU-PF, regained control in Zimbabwe in 2013, government expenditure and public bonds jumped and led to economic instability. To make up for that deficit, the government has created a "new dollar." The new dollar was issued at the same price as the dollar, but the transaction price fell sharply compared to the dollar. Because of the liberation of the new Zim dollar, money supply exploded in Zimbabwe as inflation was