Zimbabwe Case Pptx

8/20/2019 Zimbabwe Case Pptx

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Case: ZimbabweCase: Zimbabwe

descends into chaosdescends into chaos


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Zimbabwe Case ( contd..)

In 2008, 80% of popu ation was be owthe po!e"t# ine ( Z$ 13 &"i ion'month( *1 )

omethin+ i e 31- bi ion Z$ pe"

nemp o#ment ( *% at end 2008)

Inte"nationa iso ation fo" man# #ea"s


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/i+hest In ation ates in the/i+hest In ation ates in thewo" d e!e"wo" d e!e"


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4uestion 14uestion 1

$hat a"e the e# e ements of count"#$hat a"e the e# e ements of count"#"is in Zimbabwe5"is in Zimbabwe5


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4uestion 1 ( on e# e ements4uestion 1 ( on e# e ementsof count"# "is )of count"# "is )

7isca imba ance7isca imba anceoneta"# instabi it#oneta"# instabi it#

9bsence of p"ope"t# "i+hts9bsence of p"ope"t# "i+hts;chan+e and p"ice cont"o s;chan+e and p"ice cont"o s


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--


/ow has inc"eased count"# "is/ow has inc"eased count"# "isa=ected econom# and i!in+a=ected econom# and i!in+standa"ds5standa"ds5


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4uestion 2 ( on the impact of4uestion 2 ( on the impact of+o!t po icies on the econom#)+o!t po icies on the econom#)

conom# has nose>di!edconom# has nose>di!ed


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@# how much is ZimbabweAs cu""enc# ,@# how much is ZimbabweAs cu""enc# ,at its oBcia "ate, o!e"!a ued "e ati!eat its oBcia "ate, o!e"!a ued "e ati!eto its b ac ma" et "ate5to its b ac ma" et "ate5


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4uestion 3 ( on cu""enc#4uestion 3 ( on cu""enc#o!e"!a uation )o!e"!a uation )

ZimbabweAs cu""enc# o!e"!a ued b#ZimbabweAs cu""enc# o!e"!a ued b#nea" # se!en times, as fo ows:nea" # se!en times, as fo ows:

Cu""enc# o!e"!a uation @ ac ma" etCu""enc# o!e"!a uation @ ac ma" et"ate ' oBcia "ate 00 ' 82*"ate ' oBcia "ate 00 ' 82* 6.6- 6.6-timestimes

4uestion:4uestion:

$hat a"e the imp ications of an o!e">$hat a"e the imp ications of an o!e">!a ued cu""enc# to the count"#As!a ued cu""enc# to the count"#Aseconom#econom# 55


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4uestion *4uestion *

uppose we attempted auppose we attempted a dia+nostic owdia+nostic owcha"tcha"t e;p ainin+ the co apse ofe;p ainin+ the co apse ofZimbabweAs cu""enc#, what wou d it ooZimbabweAs cu""enc#, what wou d it oo

i e5 $e eep cu""enc# e"osion as the asti e5 $e eep cu""enc# e"osion as the ast

bo; in the ow cha"t.bo; in the ow cha"t.(1) (2) (3)

(*)"osion ofcu""enc#

!a ue


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4uestion *4uestion *

&his is how the ow cha"t mi+ht oo i e: &his is how the ow cha"t mi+ht oo i e:

(1)Da"+e @ud+et

eEcits

(2)7inanced b#

p"intin+ mo"emone#

(3)?a opin+in ation

(*)"osion ofcu""enc#

!a ue

Coup e of inte"estin+ Fuestions on thene;t s ide


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4uestions4uestions1 /ow do common peop e su"!i!e in1 /ow do common peop e su"!i!e in

h#pe"in ationa"# conditions, such ash#pe"in ationa"# conditions, such asZimbabwe in the "ecent past5Zimbabwe in the "ecent past5

2 9 count"# e;pe"iencin+ h#pe">2 9 count"# e;pe"iencin+ h#pe">in ation see s #ou" ad!ice onin ation see s #ou" ad!ice onb"in+in+ in ation unde" cont"o . $hatb"in+in+ in ation unde" cont"o . $hatad!ice wou d #ou +i!e them5 Is the"ead!ice wou d #ou +i!e them5 Is the"ean#thin+ in the mac"o>economican#thin+ in the mac"o>economictoo it that mi+ht he p5too it that mi+ht he p5

1*1*


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Cu""enc# @oa"d

Count"#As

mone# stocin ed to its

stoc of fo"ei+n"ese"!es

7"eecon!e"tibi it# at a

E;ed "ate ofe;chan+e to theancho" cu""enc#( sa# the )

4uestions1 $hat happens if cent"a ban se s 20 bi ion f"om "ese"!es52 $ou d #ou contemp ate a simi a" s#stem fo" India5

ee ne;t s idefo" an updateon Zimbabwe

?e="# achs


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9n pdate on Zimbabwe9n pdate on Zimbabwe &he"e has been some imp"o!ement in the ast th"ee #ea"s &he"e has been some imp"o!ement in the ast th"ee #ea"s

a"oundacti!e # in!o !ed in he pin+ the count"# tu"n>a"ound7o"ei+n in!estment is be+innin+ to come in. ( e+. ssa"7o"ei+n in!estment is be+innin+ to come in. ( e+. ssa"

tee has p ans to in!est in stee and coa ( about G 600tee has p ans to in!est in stee and coa ( about G 600mi ion )mi ion )

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Zimbabwe Case Pptx