Business Case Studies & Business Publications

Zimbabwe: Grappling with Hyperinflation

Debaere, Peter

Case

Zimbabwe: Grappling with Hyperinflation

Debaere, Peter

G-0599 | Published September 13, 2007 | 15 pages Case

Collection: Darden School of Business

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This case will lead students to a discussion of the causes and effects of hyperinflation. The link with fiscal deficits is explored, and so is the link with societal changes. The particular focus is on the hyperinflation in Zimbabwe under President Robert Mugabe whose government implemented a controversial land redistribution program. The case can be taught with a class experiment?see teaching note.

The learning objectives are to refresh students' memories about key concepts and tools from microeconomics and macroeconomics; emphasize the role of economics in the MBA curriculum; and show how analyzing economic agents as maximizers of profit and/or utility deepens one's understanding of the environment of the firm.