Zaïre’s Hyperinflation, 1990-96
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Summary:
This paper reviews Zaïre’s experience with hyperinflation during 1990-96 and develops an illustrative model based on a money demand function that includes government revenue as a determinant. Government revenue is itself subject to the “Tanzi effect,” in which inflation tends to lower revenue collections. The model is estimated over the 1990-96 period, and simulations are also presented. The paper concludes with a number of observations and policy recommendations for stopping hyperinflation in Zaïre.
Series:
Working Paper No. 1997/050
Subject:
Currencies Expenditure Hyperinflation Inflation Monetary base Money Prices
English
Publication Date:
April 1, 1997
ISBN/ISSN:
9781451846935/1018-5941
Stock No:
WPIEA0501997
Pages:
43
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