The applicability of the quantity theory of money in a multicurrency economy: Lessons from Zimbabwe 2009-2019

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Date

2022

Journal Title

Journal ISSN

Volume Title

Publisher

University of the Western Cape

Abstract

One of the first economic theories to ever study the effects of money on price levels is the Quantity Theory of Money (QTM). Both traditionally and empirically, the tenets of this study have been studied in mono currency economies. However, due to the ever-changing modernday economies, countries suffering from intense economic problems like inflation have abandoned the use of their own local currencies opting to use multiple foreign currencies as legal tender. This study explores the applicability of the Quantity Theory of Money in a multicurrency economy, a yawning gap in scholarship. More so, no studies have sought to simultaneously look at the different approaches to the QTM in one study to establish their applicability in a multicurrency economy.

Description

Magister Commercii - MCom

Keywords

Foreign currency, Inflation, Multicurrency, Zimbabwe, Finance

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