New Zealand’s history of inflation, recessions and unemployment offer clues to what might happen next. Coupled with global events, the outlook is not promising.
Every time the Reserve Bank has pushed up interest rates in order to take money out of the system, it’s also been putting money in, in a way it didn’t use to.
Why is monetary policy outside the realm of politics? What are the social ramifications of our current monetary policy system? What alternatives exist?
Renee McKibbin, Crawford School of Public Policy, Australian National University
Complaints that our recommendations would weaken the Reserve Bank governor ignore the fact that outsiders already control the board. We just want them do it better.
To encourage the widespread use of eNaira, Nigeria will have to fix its infrastructure, train financial services staff and ensure data privacy for users.
Nigeria’s new foreign exchange policy promises to discourage rent-seeking, attract foreign investment, boost exports and prevent the dollarisation of the economy but consistency is key to success.
These include the establishment of a separate Monetary Policy Board and Governance Board, aimed at making both decision-making and governance arrangements as effective as possible
Crises fueled by bank runs, starting with the Great Depression, have had something in common: Unexpected changes spur bank failures, followed by general panic and then large-scale economic distress.
For a country that aspires to reduce bureaucracy and liberalise its financial sector, currency redesign and cash withdrawal limits can only be counter-intuitive.
Distinguished Professor and Derek Schrier and Cecily Cameron Chair in Development Economics, School of Economics and Business Sciences, University of the Witwatersrand