The Leading eBooks Store Online 4,272,009 members ⚫ 1,419,367 ebooks

New to eBooks.com?

Learn more

Lessons from High Inflation Epidsodes for Stabilizing the Economy in Zimbabwe

Lessons from High Inflation Epidsodes for Stabilizing the Economy in Zimbabwe by Jens R. Clausen
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
Zimbabwe has currently the highest rate of inflation in the world (an annual rate of 1,730 percent in February, 2007). The high rates of inflation have contributed to the contraction of the economy, which has declined by about 30 percent since 1999. This paper examines the stabilization experience of countries that experienced similar rates of inflation (above 1,000 percent) during 1980-2005 and draws lessons for Zimbabwe. First, with appropriate stabilization policies, the fall in inflation can be very rapid and output normally recovers within the first year or two of stabilization. Second, while reforms need to be comprehensive, a strong upfront fiscal consolidation, including elimination of quasi-fiscal activities, is a critical element of a successful stabilization program. Third, although stabilization itself can be done without significant external financing in the first year, most countries benefited from external policy advice and technical support, including from the IMF, during stabilization and from an increase in financial assistance in subsequent years.
International Monetary Fund; April 2007
16 pages; ISBN 9781452743059
Read online, or download in secure EPUB or secure PDF format
Title: Lessons from High Inflation Epidsodes for Stabilizing the Economy in Zimbabwe
Author: Jens R. Clausen; Sharmini Coorey; Bakar Ould-Abdallah; Sònia Muñoz; Norbert Funke
 
ISBNs
1451911165
9781451866636
9781451911169
9781452743059