Zaire's Hyperinflation, 1990-96 /

This paper reviews Zaire's experience with hyperinflation during 1990-96 and develops an illustrative model based on a money demand function that includes government revenue as a determinant. Government revenue is itself subject to the 'Tanzi effect,' in which inflation tends to lower...

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Bibliographic Details
Main Author: Beaugrand, Philippe
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1997.
Series:IMF Working Papers; Working Paper ; No. 1997/050
Online Access:Full text available on IMF
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520 3 |a This paper reviews Zaire's experience with hyperinflation during 1990-96 and develops an illustrative model based on a money demand function that includes government revenue as a determinant. Government revenue is itself subject to the 'Tanzi effect,' in which inflation tends to lower revenue collections. The model is estimated over the 1990-96 period, and simulations are also presented. The paper concludes with a number of observations and policy recommendations for stopping hyperinflation in Zaire. 
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