The hyperinflation in Zimbabwe | Ushehwedu Kufakurinani

In this session we will discuss the Zimbabwean experience with hyperinflation which began in the 2000s. Introducing us to the topic are Ushehwedu Kufakurinani's working papers, which you can find here.

From hyperinflation to liquidity crunch: Money Doctors and the Zimbabwean Economic Experience, 2008 to 2015
Abstract
This paper examines Zimbabwe’s journey from hyperinflation to liquidity crunch through. It gives a chronological description of the hyperinflation and the turn into the liquidity crunch identifying the key persons, moments and policies. The paper also analyses the monetary problems of Zimbabwe during the hyperinflation as well as the liquidity crunch using the OCA model. We make the examination of Zimbabwe’s economic experience through the lens of monetary authorities, dubbed ‘money doctors’.

“From Zero to Hero”: Economic crisis, the Zimbabwean State and Currency Redenomination, 2006-2009
Abstract
This chapter evaluates the Zimbabwean state’s responses to the economic crisis through currency redenomination exercises by the RBZ, under the stewardship of Gideon Gono intended at arresting hyper-inflation. The initial redenomination, dubbed Operation Sunrise, was in 2006. Two other currency reforms took place before the de facto dollarisation in 2009. In a space of under 3 years, between 2006 and 2009, the RBZ had slashed a total of 25 zeros as part of a redenomination exercise to contain inflation. Inflation had become the arch-enemy of the Zimbabwean state and society with basic commodities disappearing from the shelves and appearing on the black market. The huge figures on the notes caused technical nightmares as it became difficult to compute and/or undertake transactions. In this chapter, we interrogate the rationale behind the currency redenomination exercises. We demonstrate how the state manipulated monetary policy for its own survival and some of the limitations of such interventions. The rationale behind RBZ’s interventions, we argue, was motivated more political rather than economic factors, representing successive attempts to save an embattled government. The efforts, too, were part of what Jeremy Jones dubbed “kukiya kiya economy”, where a whole nation-state resorted to ad hoc measures for survival.