ZIMBABWEEE PAPER $$$ WOOT!

This kid may look rich..... but... he is actually not.... :(

SUMMARY

The Zimbabwean government had been hoping the international financial organization - IMF (International Monetary Fund) to write a good report so to gain support forom other donors in order to resotre some stability to its economy.

But at the end of a 15-day visit to the country, an IMF agent issued a statement saying "technical and financial assistance from the IMF will depend on establishing a track record of sound (good) policy implementation, donor support, and a resolution of overdue financial obligations to official creditors."

It noted, however, that "IMF staff stand ready to continue to assist the authorities through policy advice."

10 Million for some candies?!?!?!?!

CONNECTION

The supply of money in a given situation is an important determinant of the economic condition of a given economy. It repersents the amount of purchasing power available. If the supply of money were to increase, then purchases of goods and services would increase as well. The increased spending would mean more jobs and possibly higher prices. But this wasn't the case for the Zimbabweans currency as the government started printing huge amounts of cheap money with unacceptably sky-high values on them, making their money worth = virtually nothing.

REFLECTION

From the news that I've read and watched, the Zimbabwean's economic crisis has stretched for months. Its inflation rate became the highest in the world last year, fueled by severe shortages of all essentials, including food, fuel and electricity.

And a big part of this was due to its worthless legal tender.

No matter if the zimbabwean's leader was trying to repay it debts or whatever, it is clearly not working at all. Until its economic stabalizes (which is going to take a LONG LONG time...) The Zimbabwean better take on the IMF's advices and work hard through its way for the glimpse of light.

GDP GROWTH NO MORE FOR 2009?!?!?!?!?!?

The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments, which measures the payments that flow between any individual country and all other countries. It is an organization formed to stabalize international exchange rates and facilitate development.

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SUMMARY

The International Monetary Fund announced on Wednesday, January 28th, 2009 that the global economy slowdown in 2009 will drag Canada fortunes down for at least two years.

According to its latest economic updates, they believe that the global economy will barely expand at all - growing a mere 0.5 % in 2009, the lowest rate in 60 years.

But even with the weaker forecast, it is expected that Canada will continue to outperform the U.S. economy in the following years due to the heavy crush down by the national mortgage turmoil while under the rule of Bush.

CONNECTION

During these economy downturns, the Keynsian economic theory is often taken into effect, where governments are actively involving in the growth and maintenance of the economy by increasing government spending to support the demand for goods and services, and hopefully, preserve employment.

Currently, job loss is a major concern for many. People’s disposable income is decreasing, and this will lead to low consumption in goods and services within the nation and therefore, decreasing the overall national GDP level.

REFLECTION

With the global economy coming to a virual halt, nations around the world is trying their best in controlling their financial budget and maintaining a steady flow of economic activities ties among the national / international market.

Now a days, we see a lot of hesitatinos in buyers. People are thinking more about how they spend their $, and everyone is trying to save as much as possible. In this case, most people save their money in the banks. With less money circulating and along with the multiplier effect, the negative impact on the economy is going be quite a hit. This is the reason why an effective governemnt and its ability (decisions made) to get itself back to tract is crucial to a country’s wellbeing.