According to an article in the Wall Street Journal, the inflation rate in Zimbabwe in 2023 was greater than 200 percent per month. The article noted that “most businesses once again demand payments in U.S. dollars, although the Zimbabwe dollar remains the country’s official currency.”

a. How is it possible for a country to experience inflation rates as high as those in Zimbabwe?

b. The 200 percent per month inflation rate cited in the article measures prices in terms of the Zimbabwe dollar. Is it likely that the inflation rate was as high when measured in terms of the U.S. dollar? Briefly explain.