Zaïre’s Hyperinflation, 1990-96
April 1, 1997
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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.
Subject: Currencies, Expenditure, Hyperinflation, Inflation, Monetary base, Money, Prices
Keywords: Currencies, Europe, exchange rate, foreign exchange, government operation, government spending, Hyperinflation, Inflation, inflation rate, Monetary base, money stock, velocity of circulation, WP, Zaïrian authorities
Pages:
43
Volume:
1997
DOI:
Issue:
050
Series:
Working Paper No. 1997/050
Stock No:
WPIEA0501997
ISBN:
9781451846935
ISSN:
1018-5941
