News article about : Unrestrained Money Supply Growth Sinking Zim Dollar. Answer question: Do you agree with the following statement; ‘hyperinflation lowers potential GDP because hyperinflation will reverse the process of specialization’? Total 350-400 words
Instructions · Max 350-400 words · Realize that the questions are complex in nature · Before answering a question, make sure you understand what is being asked · Read all relevant chapters and look for concepts, theories and models that can provide context · Provide clear and structured answers. · Do not add unnecessary pictures, graphs and tables. · If you can’t access the books mentioned below use the PPT and google. But do let me know when you can not use the books Sources & key terms: Parkin: chapter 22, and Mishkin: chapter 3 The Economics of Money, Banking and Financial Markets, Global Edition Frederic S. Mishkin ISBN: 9781292268859 Economics Parkin, Micael Powell, Melanie Matthews, Kent ISBN: 9781292147826 Druk: 10 · Powerpoint slides - CH22_week1_1920 & CH010203_week4_1520 Question 4 Zimbabwe: Unrestrained Money Supply Growth Sinking Zim Dollar In 2019, the Zimbabwean economy declined for the first time in a decade by more than 6.5%. The United Nations (UN) has added its voice to the Zimbabwean economic crisis pointing that the economy is in severe distress, and will shrink by 2.5% in 2020. Unresolved economic challenges include low levels of confidence, weak investment, high public debt, power supply gaps, uncontrolled inflation, and decline in aggregate demand, fuel and foreign currency shortages. In the past 6 months, unrestrained money supply growth has led to the freefall of the re-introduced Zimbabwean Dollar and an upsurge in inflation rate to over 521% as of December 2019. (AllAfrica.com, January 31, 2020) 4. Do you agree with the following statement; ‘hyperinflation lowers potential GDP because hyperinflation will reverse the process of specialization’? (Parkin: chapter 22, and Mishkin: chapter 3)