• Tara McIndoe-CalderEmail author
  • Tara Bedi
  • Rogelio Mercado


In this book, we look at the case of hyperinflation in Zimbabwe, showing how a number of decisions made by the government initiated the episode of hyperinflation between 2006 and 2008. Through using a new price series dataset, we show that the money base expanded considerably from 2000, in parallel with growing budget deficits. The mechanisms to address hyperinflation are clear. Stabilisation programmes play a central role, especially the anchoring of inflation expectations through credible monetary policy. In the case of Zimbabwe, while a change in regime was initiated, it was only partially followed though. As a result, Zimbabwe in 2019 is again in a precarious situation. There is a need to re-invigorate these reforms, including increasing tax revenues and containing expenditure, in order to avoid a recurrence of hyperinflation.


Zimbabwe Hyperinflation Budget deficit GDP Stabilisation 


  1. IMF. 2010. Zimbabwe: 2010 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Zimbabwe. IMF Country Report No. 10/186, Washington, DC.Google Scholar
  2. ———. 2017. 2017 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Zimbabwe. IMF Country Report No. 17/196, Washington, DC.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Tara McIndoe-Calder
    • 1
    Email author
  • Tara Bedi
    • 2
  • Rogelio Mercado
    • 3
  1. 1.Central Bank of IrelandDublinIreland
  2. 2.Economics DepartmentTrinity College DublinDublinIreland
  3. 3.The South East Asian Central Banks Research and Training CentreKuala LumpurMalaysia

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