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Zimbabwe moves from hyperinflation to deflation

Geoff Riley

26th December 2009

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Ask a student on the first day back which countries you associate with hyper-inflation - its a fair bet that most will offer Zimbabwe as an answer - and of course they would have been right up to a few months ago. But currency reforms have brought about a remarkable twist in the inflationary outlook. “Since January, inflation has slowed rapidly after the country shelved use of the local currency and adopted various currencies such as the dollar, South African rand, British pound and Botswana pula” ......indeed there are signs of mild deflation in consumer prices.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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