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Class Year

2011

Abstract

For the past decade, Zimbabwe has been experiencing an economic decline that has resulted in an inflation rate of 231 million percent and an unemployment rate of over 90 percent. Past research has concluded that the economic decline of Zimbabwe has mainly been caused by poor monetary policies and failure of fiscal policies to control the budget deficit. This research aimed to closely examine some of these policies that the Zimbabwean government implemented, the effects of these policies on economic activity, employment and inflation levels in the country. By interviewing many economic analysts in Zimbabwe, I managed to gather the main causes of the country’s decline. In an effort to understand the effects of inflation on a country, I looked at other developing countries that have survived similar economic challenges and assessed some of the steps they took to overcome the challenges. From the research, I managed to conclude that although government policies on agriculture, participation in armed conflicts, government spending and investment have been weak, structural reforms can be successfully implemented to get the economy functioning again.

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