Business Case Studies, Macroeconomics Case Study, Hyperinflation in Zimbabwe

print page
Tell A Friend
Bookmark

Case Categories

Macroeconomics Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Hyperinflation in Zimbabwe: Robert Mugabe Thrives, Economy Suffers

Publication Year : 2007

Authors: Sai Manohar Panuganti, Saradhi Kumar Gonela

Industry: General Business

Region:Zimbabwe

Case Code: MEBE0020

Teaching Note: Available

Structured Assignment: Available

Buy This Case Study
OR





Abstract: During the early 1980s, Zimbabwe’s president, Robert Mugabe’s economic policies ushered in unprecedented progress. This however did not last long. By mid-1980s,Mugabe’s regime substituted economic gains for political motives in macroeconomic policy formulation. Economic mismanagement resulted in inflation, which snowballed into hyperinflation by 2007. Zimbabwe’s central bank did take measures to reduce or control the rise in inflation – all of which were futile. Economists predict that inflation may soon touch 100,000%, if it grows unarrested.

The case study helps analyse the nature and causes of various kinds of inflation, and their impact on the economy. It also helps debate possiblemeasures to control Zimbabwe’s growing inflation. Deep analysis reveals Zimbabwean central bank to be in a fix: it has to decide what is urgent and what is important. It has to contain inflation urgently.More importantly, a growthmechanismis needed.Yet how should these two goals be balanced – an economic quandary, to be resolved by the class.

Pedagogical Objectives:

  • To understand different types of inflation and their characterstics
  • To analyse different types of inflation indices
  • To study the reasons for and effect of hyperinflation
  • To understand the causes of hyperinflation in case of Zimbabwe
  • To analyse themeasures taken by central bank to fight hyperinflation.

Keywords : Wholesale price index; Types of Inflation; Cost push inflation; Unemployment and Inflation; Fiscal Policy; Monetary Policy; Consumer Price Index; Demand Pull Inflation; Monetary Policy Case Study; Hyperinflation; Money Supply; Quantity Theory of Money

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»




Contact us: IBS Case Development Centre, Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal, Ranga Reddy District, Hyderabad-501203, Telangana, INDIA, E-mail: casehelpdesk@ibsindia.org

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap