Principles of Macroeconomics ECON 401 Dr Andrew L

Principles of Macroeconomics ECON 401 Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” April 28, 2009 Principles of Macroeconomics, Day 11 卜安吉

Yugoslavia Hyperinflation n 1994 -5: On January 24, 1994 the government introduced the super Dinar equal to 10 million of the new Dinars. April 28, 2009 Principles of Macroeconomics, Day 11 2

Zimbabwe Hyperinflation n World-record hyperinflation last officially set at 231 million per cent. Sydney Morning Herald, http: //www. smh. com. au/news/world/231000000 -inflation-zim-dollar-dumped/2009/01/30/1232818687057. html n February 2, 2009: HARARE (Reuters) Zimbabwe's central bank revalued its dollar again on Monday, lopping another 12 zeros off its battered currency to try to tame hyperinflation and avert total economic collapse. April 28, 2009 Principles of Macroeconomics, Day 11 3

Zimbabwe Hyperinflation n Reserve Bank of Zimbabwe Governor Gideon Gono announced the new currency moves on Monday n "Gono gave no updated inflation figures but said broad money supply growth rose from 81, 000 percent in January to 658 billion percent in December. http: //www. reuters. com/article/news. Maps/id. USTRE 5112 IF 20090202 April 28, 2009 Principles of Macroeconomics, Day 11 4

Review for the Test n Review and study! – Make sure you study all of your notes – Make sure that you study all of the quizzes – Make sure that you study all of the Problem Sets and Homeworks April 28, 2009 Principles of Macroeconomics, Day 11 5

RELAX – we’ll see you Thursday n If April 28, 2009 you’ve studied – do not worry! Principles of Macroeconomics, Day 11 6