Running Header: INFLATION IN CHILE AND ZIMBABWE
Inflation in Chile and Zimbabwe
Millbrook High School
INFLATION IN CHILE AND ZIMBABWE 2
Today, the economic fortunes of Zimbabwe and Chile could not be any different, Chile is
currently the leader of Latin American countries in competitiveness, income per capita,
globalization, economic freedom, and perceived corruption all measures of the health of an
economy. Zimbabwe on the other hand is going on an inflation percentage rate of
79,600,000,000%, but just 38 years ago in 1980 you could go as far as to say that the tables were
turned, Chile having just been the subject of a military Coup,and constant political upheaval had
an inflation rate of 536%, while Zimbabwe, (a newly established African country out of the
remnants of Rhodesia) was thriving, Real Growth exceeded 20% between the years 1980-1981
and US$1 was equivalent to Z$0.657, but somewhere along the road key events took place which
changed the economic futures of both of these countries. This leads to the question that this
paper should be answering, “what can governments do to stop/limit inflation ?”,and after
