zimbabwe
Member rating: No Rating | Words: 800 | Submitted: Mon Apr 21 2008
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Article 1-analysis One of the main objectives of governments' macroeconomic policy is to keep price as stable as possible. In other words, every government intends to keep a low and stable rate of inflation over time. Inflation is defined as persistent increase in the average price levels in an economy. High levels of inflation are always associated with negative consequences. According to an article, "since 1980 the Zimbabwe's agricultural output has fallen by 850,000 tonnes". Even if the wages of farmers, i.e. the majority of workers in Zimbabwe, would have increased at the inflation rate, because of the rapid fall in agricultural output, many of them would have been laid off anyway. This means that the community of Zimbabwean farmers altogether have less to cherish. In view of lower production levels in the country - leading to less income for distribution among people - and the high inflation rates, the population...

