What cause hyperinflation in Zimbabwe?
Zimbabwe is a nation that has previously endured severe hyperinflation. Due to raging hyperinflation, the Zimbabwean dollar was formally stopped by the government and is no longer in use.
Zimbabwe experienced the second-highest incidence of hyperinflation ever during a financial crisis ten years ago; the country's inflation rate for November 2008 was an astounding 79,600,000,000% (about a daily inflation rate of 98%).
In Zimbabwe, prices practically doubled every day; the cost of goods and services increased by 50% the following day. Economic activity in Zimbabwe effectively stopped when the unemployment rate reached 70%, turning the country's economy into a barter system.
Several economic shocks were blamed as the root cause of the hyperinflation in Zimbabwe. Due to the growing national debt, major reductions in economic output and exports, political corruption, and an overall sluggish economy, the national government expanded the money supply which lead to excess in money supply, and decrease in currency value.