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.