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Zaïre’s Hyperinflation, 1990-96

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  • Mr. Philippe Beaugrand

Abstract

This paper reviews Zaïre’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 Zaïre.

Suggested Citation

  • Mr. Philippe Beaugrand, 1997. "Zaïre’s Hyperinflation, 1990-96," IMF Working Papers 1997/050, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1997/050
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=2174
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    Cited by:

    1. Mr. Jean-Claude Nachega, 2005. "Fiscal Dominance and Inflation in the Democratic Republic of the Congo," IMF Working Papers 2005/221, International Monetary Fund.

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