Central Bank Quasi-Fiscal Losses and High Inflation in Zimbabwe: A Note

Zimbabwe''s failure to address continuing central bank quasi-fiscal losses has interfered with both monetary management and the independence and credibility of the Reserve Bank of Zimbabwe (RBZ). Realized quasi-fiscal losses are estimated to have amounted to about 75 percent of GDP in 2006...

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Bibliographic Details
Main Author: Muñoz, Sònia (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2007
Series:IMF Working Papers Working Paper No. 07/98
Online Access:UBW01
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Summary:Zimbabwe''s failure to address continuing central bank quasi-fiscal losses has interfered with both monetary management and the independence and credibility of the Reserve Bank of Zimbabwe (RBZ). Realized quasi-fiscal losses are estimated to have amounted to about 75 percent of GDP in 2006. Because they were financed by creating money creation or issuing RBZ securities, they contributed to the four-digit inflation reached in 2006. The remedy for the current situation is clearly to eliminate the causes of losses by implementing measures to improve the cash-flow of the bank and restore its financial position
Physical Description:1 Online-Ressource (20 p)
ISBN:1451866623
9781451866629

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