Tuesday, 25 June 2019

GUERRILLA ECONOMICS WILL NOT WORK, SAYS CHAMISA


Guerrilla economics and ambush currency measures are ill-advised, destructive & confidence-draining. Zim-dollarisation requires that macroeconomic fundamentals, public confidence, trust, fiscal discipline, political stability and legitimacy be in place for it to be meaningfully sustainable.

Our economics suffers from too much state  control and excessive politics otherwise known as economic dirigisme.

It is my considered view that certain key benchmarks need to be achieved before the local currency can be sustainably introduced in order to anchor the local currency.

These benchmarks include: attaining a sustainable GDP growth rate of at least 7%; low and stable inflation; reducing the high debt ratios to very low and sustainable levels; increasing the level of savings and investments to at least 25% of GDP; reducing the balance-of-payments deficit to less than 5% of GDP; increasing the export level to at least 25% of GDP; high levels of productive capacity; political stability and legitimacy.

More importantly, foreign-currency reserves need to be built up to sustainable levels to anchor the Zimbabwe dollar and to defend it in the event of a currency or speculative attack.

We have the SMART economic blueprint as our alternative to the current voodoo approach to economics.

Think differently.

Nelson chamisa

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