Zambia like many countries in the sub-Saharan region have run substantial fiscal deficits over the last decade while at the same time their monetary authorities have allowed money supply to grow excessively thereby fueling inflationary pressure (Zambia’s inflation reached 22.5% in mid-2021 and has remained above the 6-8% target). Zambia like most nations on the continent have turned to the IMF seeking bailout packages to avoid economic collapse. As part of the IMF bailout packages, the Zambian ministry of Finance is required to narrow the fiscal deficit while the central bank is required to implement measures to bring inflation back into the target band of 6-8%.
Question One
Zambia like many countries in the sub-Saharan region have run substantial fiscal deficits over the last decade while at the same time their monetary authorities have allowed money supply to grow excessively thereby fueling inflationary pressure (Zambia’s inflation reached 22.5% in mid-2021 and has remained above the 6-8% target). Zambia like most nations on the continent have turned to the IMF seeking bailout packages to avoid economic collapse. As part of the IMF bailout packages, the Zambian ministry of Finance is required to narrow the fiscal deficit while the central bank is required to implement measures to bring inflation back into the target band of 6-8%.
As an economist hired by his Excellence president Hakainde Hichilema, using appropriate
Introduction
The price level is determined by averaging the current prices for all the products and services that an economy produces.
The amount that a lender charges a borrower for the use of assets on top of the principle is known as the interest rate. The income raised from a cash account at a financial institution or credit union is features related to an interest rate.
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