Abstract
The Democratic Republic of the Congo (DRC) experienced hyperinflation throughout the 1990s. For instance, from October 1990 to December 1995, the cumulative increase in prices was 6.3 billion percent, while the local currency underwent a free fall on the parallel foreign exchange market. This chapter reviews the DRC’s experience of hyperinflation and falling currency. Section I describes the causes and consequences of such dramatic hyperinflation and prolonged currency depreciation; Section II analyzes the theoretical and empirical bases of the policies that were implemented to break the vicious circle of hyperinflation and falling currency; and Section III highlights the main conclusions and their policy implications.
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