AS.180.101 Chapter Notes - Chapter 14: Zimbabwean Dollar, Fractional-Reserve Banking, Reserve Currency
Document Summary
Study banks, money supply, and the link between changes in the money supply and the inflation rate. Washing dollar bills to save the economy of zimbabwe. In 2008-store in zimbabwe had few goods to sell and few buyers (customers with money to buy those goods) Suffered from hyperinflation inflation rate was so high. During this time, chain couldn"t obtain us dollars it needed to import goods from foreign suppliers who refused to accept zimbabwean dollars. 2013: well-stocked shelves and many customers b/c gment took step of making us dollar the country"s official currency. This ended hyperinflation but caused a shortage of dollars (natives would hand wash us dollars to keep them in use as long as possible) + shortage in coins priced goods to the dollar amounts. Gment decided to pay for all of its expenses by printing more and more money prices rose foreign and local residents refused to accept the. Exploring the role of money in the economy.
