Zimbabwe: Challenges and Policy Options after Hyperinflation

Zimbabwe: Challenges and Policy Options after Hyperinflation
ISBN-10
1462309186
ISBN-13
9781462309184
Series
Zimbabwe
Pages
56
Language
English
Published
2010-06-23
Publisher
International Monetary Fund
Authors
James McHugh, Gilda Fernandez, Warren L. Coats

Description

This paper examines the challenges and policy options after hyperinflation in Zimbabwe. The paper reviews the pros and cons of alternative monetary regimes for Zimbabwe to succeed the current multicurrency system, which the authorities consider a temporary arrangement. The analysis suggests that some form of official dollarization has significant advantages. The paper also assesses competitiveness and external sustainability in debt-distressed Zimbabwe. It also makes a case for creating fiscal space for growth and development in post-hyperinflation Zimbabwe.

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