Experts love how Zimbabwe's government keeps money tight. They say this approach has kept prices steady and helped the currency stay stable. The government limits how much money goes around by keeping interest rates high. They also spend less money from the public budget. Both these steps help keep the economy stable.
Zimbabwe used to have big problems because the government printed too much money. They did this to pay for public programs. Recent numbers from Zimbabwe's statistics office show zero percent inflation for March. This number dropped by 0.3 percent from February's rate. The US dollar's inflation rate fell to 0.1 percent from 0.2 percent last month. The ZiG rate went down to -0.1 from 0.5 percent.
Economist George Nhepera thinks these numbers look great. He believes Zimbabwe has finally managed to control inflation. He credits this success to the central bank's strict money rules and the government's careful spending habits. The country has better coordination between money policy and budget management these days.
When central banks want to slow down rapid economic growth, they use tight money policies. The Reserve Bank of Zimbabwe has done exactly this. Their approach has kept prices and exchange rates stable across markets. Inflation in Zimbabwe follows exchange rate changes, which means keeping the local currency stable matters a lot. The amount of money available directly affects this stability.
The World Bank noticed a big jump in the money supply early in 2024. But since April last year, when Zimbabwe introduced the ZiG currency, tough money policies have brought back price stability. Zimbabwe saw high inflation from January through March 2024. The government spent heavily on infrastructure projects then. People feared the country might hit extreme inflation like in 2008, when savings and pensions lost all value.
Zimbabwe travels a different path today. Low inflation and stable exchange rates make businesses happy. They say these conditions could support long-term growth and make the economy more predictable. Dr. Prosper Chitambara believes the government must address business costs to boost competition and improve living standards.
The yearly US dollar inflation rate remains high at 15 percent for March. Dr. Chitambara worries about these numbers. He points out that February showed 15.1 percent and March stayed at 15 percent. This makes Zimbabwe less competitive against other countries. He blames several factors, especially taxes.
Dr. Chitambara is happy that the government plans to review taxes and high business costs. He notes that taxes raise business expenses across all sectors. For example, fuel prices exceed those in neighboring countries. He calls for quick action to fix the business environment. This includes reviewing taxes, simplifying business processes, and streamlining tax administration. These changes would affect both inflation rates and household living costs.
Zimbabwe used to have big problems because the government printed too much money. They did this to pay for public programs. Recent numbers from Zimbabwe's statistics office show zero percent inflation for March. This number dropped by 0.3 percent from February's rate. The US dollar's inflation rate fell to 0.1 percent from 0.2 percent last month. The ZiG rate went down to -0.1 from 0.5 percent.
Economist George Nhepera thinks these numbers look great. He believes Zimbabwe has finally managed to control inflation. He credits this success to the central bank's strict money rules and the government's careful spending habits. The country has better coordination between money policy and budget management these days.
When central banks want to slow down rapid economic growth, they use tight money policies. The Reserve Bank of Zimbabwe has done exactly this. Their approach has kept prices and exchange rates stable across markets. Inflation in Zimbabwe follows exchange rate changes, which means keeping the local currency stable matters a lot. The amount of money available directly affects this stability.
The World Bank noticed a big jump in the money supply early in 2024. But since April last year, when Zimbabwe introduced the ZiG currency, tough money policies have brought back price stability. Zimbabwe saw high inflation from January through March 2024. The government spent heavily on infrastructure projects then. People feared the country might hit extreme inflation like in 2008, when savings and pensions lost all value.
Zimbabwe travels a different path today. Low inflation and stable exchange rates make businesses happy. They say these conditions could support long-term growth and make the economy more predictable. Dr. Prosper Chitambara believes the government must address business costs to boost competition and improve living standards.
The yearly US dollar inflation rate remains high at 15 percent for March. Dr. Chitambara worries about these numbers. He points out that February showed 15.1 percent and March stayed at 15 percent. This makes Zimbabwe less competitive against other countries. He blames several factors, especially taxes.
Dr. Chitambara is happy that the government plans to review taxes and high business costs. He notes that taxes raise business expenses across all sectors. For example, fuel prices exceed those in neighboring countries. He calls for quick action to fix the business environment. This includes reviewing taxes, simplifying business processes, and streamlining tax administration. These changes would affect both inflation rates and household living costs.
