Abstract. This paper examines the impact of dollarization on the performance of the Zimbabwean economy from to using an interrupted time-series. The study investigated the effects of dollarisation on economic growth in Zimbabwe from Q to Q The variables included are gross. Despite this Zimbabwe is viewed as a dollarised economy given that have occurred and the effect that would have had on the Government.

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Menu Menu Search By. The dollarisaton had seduced the owners of those businesses. This rate was available to only a select few and enabled them to buy foreign currency at hugely discounted rates. In his first budget as Finance Minister inTendai Biti noted that the Zimbabwean dollar had become a currency that was no longer accepted by the public due to the loss of the main functions zombabwe money through loss of confidence.

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A system that has given transparency. What Do we Really Dollarissation Dollarisation is not the end for Zimbabwe, but rather a starting point that has brought about a certain level of stability which is needed to support the other changes that need to occur.

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An interrupted time-series analysis. Of course, since dollarization began a sizable number of Zimbabweans have emigrated, many of them of working age; that is to say, within the PEA. The chief advantage to dollarization is that rampant inflation has been dramatically stabilized.

Dr Ngwenya recommend increasing productivity and reducing costs of production so that industrial activity does not further decay. This CAI paper analyses dollarisation in Zimbabwe.

At the moment, we continue with structural problems: See general information about how to correct material in RePEc.

Investigating the Impact of Dollarisation on Economic Growth – A Case of Zimbabwe

Or real estate that commercialized houses in that currency. For Developmental practioners like us, the political dimension does not stop there.

A peculiar phenomenon happened in March of We see that dollarising was a necessary step to avoid what had turned into a disaster of catastrophic proportions from spiralling into what would have been, and in fact already was, unsustainable levels. Forgot you username or password?

It is not difficult to imagine terrible devaluation that dollarisahion have occurred and the effect that would have had on the Government. In order to visualize the relation that dollarization has had on political policy, a small exercise of imagination is required.


Some analysts also efcects that dollarization has created an atmosphere of stability for the public, soothed by their purchase capacity, that neutralizes the calls to mobilization that indigenous and labor leadership often make.

The retailers and companies of Zim went ahead with dollarization. Sign up for our FREE daily email newsletter. Your password will be sent to this address. Since the official adoption of dollarization, Zimbabwe is largely a cash-based economy, with a huge amount zimbabe U. Dollarization is a factor of stability.


John Edward King, What do we really know? It will probably take many years before the effects of dollarization in Zimbabwe can be fully catalogued and understood, but so far the results have been clearly mixed. Needless to say, political stability will also ensure that any progress made towards de-dollarisation would not be lost. It is necessary to ask if the model of dollarization has contributed zimbabwee growth, so that poverty is reduced dollarsiation that less imbalances exist in the distribution of wealth.

This allows to link your profile to this item. It is said that more than half of the Zimbabwean ministers were against the war.

However this was not controlled and its excessiveness resulted in runaway inflation. The bottom fo is this: Dollarization has done nothing to improve this problem but rather worsened it. And it is necessary to ask if the foundations are being laid so that dollarization is sustainable in the medium and long term.

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