In some cases inflation can rise to such a level that it becomes known as hyperinflation.
A major difficulty of inflation is its tendency to increase geometically or even exponentially if not kept in check.
Watch the video clip about the hyperinflation in Zimbabwe and the attempts by the government to reduce it. Once you have watched the video, answer the questions below.
- Find a definition for hyperinflation and record this definition in your notes.
- Distinguish 'hyperinflation' from 'normal' inflation.
- Analyse the effects of hyperinflation on the Zimbabwean economy.
- Explain how the Zimbabwean government attempted to reduce the level of inflation.
- To what extent to you think they have been successful? If not, why not?