January 2009 Monetary Policy
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Albeit showing worrying signs of resurgence, Zimbabwe’s inflation has now trended in low regions of under 7%, that allow for the convergence of the economy’s macroeconomic performance indicators towards sustainable steady-state growt the convergence of the economy’s macroeconomic performance indicators towards sustainable steady-state growth levels.
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Under the multiple currency system the efficiency of the instrument of monetary aggregates as a tool to fend off inflationary pressures is highly limited, as money supply in the economy has become exogenous to Monetary Authorities’ discretionary policy framework.