Reasons for the Rejection of the Zimbabwean Currency

Essay from the year 2015 in the subject Business economics - Economic Policy, , course: MACROECONOMICS AND POLICY, language: English, abstract: Zimbabweans in 2008 rejected the Reserve Bank of Zimbabwe (RBZ) introduced higher denomination bearer cheques just before the 30th January 2009 dollarization. More recently the transacting public were cautious in accepting the RBZ¿s 18th December 2014 bond coins such that up to now (May 2015) some sections of the economy are still not accepting it as a medium of exchange; more than 4 months after introduction. This essay tries to briefly highlight some of the reasons why (in both instances) economic agents rejected or attempted to reject the currency availed to them despite the logic behind such decisions by the RBZ. It is argued in this essay that reasons for which the economic agents (here in Zimbabwe) rejected or attempt to reject the currency availed to them are fundamentally rooted on the New Classical school of thought.