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These adverse global developments have combined with, tight domestic liquidity conditions, limited access to offshore lines of credit, frequent power outages and a huge debt overhang to take steam off the recovery momentum gained since the adoption of multiple currencies in 2009.
download July 2012 Monetary Policy
Zimbabwe remains susceptible to the vagaries of the adverse external macroeconomic environment, particularly within the aegis of the multiple currency system which is typified by limited macroeconomic policy instruments. In essence, lack of potent policy instruments to absorb both domestic and external shocks relegates Zimbabwean policy makers to mere observers and pray that global developments remain favourable.
download January 2012 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.
We need to increase production of goods and services in this economy in order to increase economic growth, employment, exports , tax revenue, tax base and liquidity. Economic growth is key to economic prosperity and poverty reduction.
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