Economic Crisis

Introduction In the field of macroeconomics, the word inflation carries with itself a negative aura, due to some of the most famous inflation cases the world has witnessed. Even though a small amount of inflation is highly necessary for economic growth, too much inflation causes a ripple effect. The famous case of hyperinflation in Zimbabwe is evidence of the same. To this date, the economy of Zimbabwe is suffering with inflation and the collateral damage it has caused in the lives of every person residing there. In this essay, we will come to see what caused this inflation and how tragically it impacted and sabotaged the banking system, eroded investment opportunities and lost all credit accessibility. What is Inflation? Inflation is a macroeconomic variable which accounts for the rise in prices of the goods and services in a country. Essentially inflation is when there is a hike in prices of everyday essential goods and services that consumers use over their lifetime. As prices o...