n Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust - Dollarization and its effect on selected macroeconomic variables : Zimbabwe 1990-2013
|Article Title||Dollarization and its effect on selected macroeconomic variables : Zimbabwe 1990-2013|
|© Publisher:||Southern Bureau of Strategic Studies Trust|
|Journal||Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust|
|Affiliations||1 Ministry of Finance and Economic Development, Zimbabwe and 2 University of Zimbabwe|
|Publication Date||Jan 2015|
|Pages||1 - 17|
|Keyword(s)||Devaluation, Dollarisation, Exchange rate, Hyperinflation, Interest rate and Zimbabwe|
The primary objective of this study is to analyse the effects of dollarization on important macroeconomic variables in Zimbabwe. Its subsidiary objectives include the testing of seven hypothesis that there has been no change in average inflation, average interest rates, average real GDP growth and their volatilities before and after dollarisation and the determination of business cycle correlation between Zimbabwe and America with real GDP acting as proxy. Means, volatility are compared before and after dollarization to asses significant changes. The results show that both inflation and interest rates fell and stabilised after dollarization. Furthermore the increase in the real GDP growth rate was statistically significant.
Article metrics loading...