Author: Valentine Guruuswa

I am a Chartered Accountant who holds a Master of Commerce degree in Development Finance from the Univeristy of Cape Town. My research interests are in political economy, money and finance in sub-Saharan Africa, industrialisation, input-output analysis, and structural change.

A value perspective of price and currency stability in Zimbabwe

Valentine GuruuswaLeave a comment

In his , Zimbabwe鈥檚 Finance and Economic Development Minister, Hon. Prof. Mthuli Ncube identified rising inflation and currency depreciation as the major challenges requiring 鈥渢he support of all stakeholders and citizens鈥�.  Zimbabwe is failing to ward off persistent inflation. According to Ncube鈥檚 mid-term budget report, headline inflation increased from 60.7% in January to 191.6% in June 2022.

In this post, I will argue that whilst price and the exchange rate have some importance, preoccupation with them can constrain economic development. I start off by giving a brief background of inflation in Zimbabwe as well as inflation targeting policies, before arguing that sheepishly pursuing currency and price stability equates to commodity fetishism. I then look at the real beneficiaries of price and currency stabilisation policies. Finally, I attempt to demystify value and price in Zimbabwe鈥檚 context.

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