During Zimbabwe’s hyperinflation that ended in 2009, people turned to an illegal round-tripping transaction called “burning money” to preserve purchasing power. The transaction involved illegally acquiring foreign currency at the official rate before converting back to domestic currency in...

Unlike most hyperinflations, during Zimbabwe's recent hyperinflation, as in Revolutionary France, the currency ended before the regime. The empirical results here suggest that the Reserve Bank of Zimbabwe operated on the correct side of the inflation tax Laffer curve before abandoning the...

In Miller and Ndhlela (2020), we estimate semi-elasticities of the real monetary base and currency in circulation with respect to inflation during Zimbabwe's hyperinflation using Del Negro and Primiceri's (2015) Bayesian time varying structural autoregression (TVP-SVAR) method. The estimated...

The delayed end to Zimbabwe's hyperinflation in 2009 gave rise to an official dollarization. Before then, the Reserve Bank of Zimbabwe (RBZ) operated on the correct side of the inflation tax Laffer curve. Estimated seignorage maximizing rates derive from Bayesian, time-varying parameter,...

This paper evaluates Zimbabwe's exchange rate policy before and during the post-1997 currency and economic crisis. This is achieved by conducting simulations of an exchange rate regime evaluation model that minimizes the conditional variance of real output following Agbeyegbe and Osakwe (2005)....

The influence of exchange rate signals in an economy is very powerful and often pervasive. Economists and policy makers thus strongly regard the real exchange rate (RER) as a key tool to influence the economy due to its role in determining production and consumption choices between domestic and...

This paper presents an account of Zimbabwe's economic development and policy environment for the period 1980-2006. It focuses on monetary and exchange rate policies and explores their influence on economic developments before and after the reform programme that was launched in 1991. A key...