Cover IMF Working Papers
Zaïre’s Hyperinflation, 1990-96
Author: Mr. Philippe Beaugrand
Series:
IMF Working Papers
Volume/Issue:
Volume 1997: Issue 050
Language:
English
Publication Date:
01 Apr 1997
DOI:
https://doi.org/10.5089/9781451846935.001
ISBN:
9781451846935
ISSN:
1018-5941
Pages:
43
Keywords:
WP; government spending; money stock; foreign exchange; exchange rate; Zaïrian authorities; inflation rate; velocity of circulation; government operation; Inflation; Currencies; Hyperinflation; Monetary base; Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper reviews Zaïre’s experience with hyperinflation during 1990-96 and develops an illustrative model based on a money demand function that includes government revenue as a determinant. Government revenue is itself subject to the “Tanzi effect,” in which inflation tends to lower revenue collections. The model is estimated over the 1990-96 period, and simulations are also presented. The paper concludes with a number of observations and policy recommendations for stopping hyperinflation in Zaïre.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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