Sign in or 
Location: Macro Unit II AP Econ in the News
Discussion: My computer won't load the easyedit toolbar for some reason.
Category:
Discussion Forum /
General Discussion
Share this
Showing 1 post
SharonLi |
My computer won't load the easyedit toolbar for some reason.
Feb 28 2008, 11:14 AM EST
As Inflation Soars, Zimbabwe economy plungeshttp://www.nytimes.com/2007/02/07/world/africa/07zimbabwe.html?_r=1&scp=1&sq=As+Inflation+Soars%2C+Zimbabwe+Economy+Plunges&st=nyt&oref=slogin This article describes Zimbabwe's hyperinflation crisis which has severely affected living conditions, jobs, and the government. Though all incomes were raised, this raise was not enough to match up to the severity of the hyperinflation, leading some workers to even go on strike. Hence, productivity decreased leading to lower GDP and more inflation. Costs are "soaring" and this includes raw materials, which would increase production costs and create cost-push inflation. The government also tried to alleviate the situation by selling gasoline to farmers at a cheaper price, but instead of using it, the farmers sold it on the black market to earn money. With the government planning to set certain prices for businesses, the black market is expected to grow even more. The government also tried to make inflation illegal, but the situation has spiraled out of their control. Do you find this valuable?
Keyword tags:
None
|
Sign in to be the first to reply.
