Cash shortages in Zimbabwe: any prospect for solutions?

Abstract

The paper gives special attention to the hyperinflation and cash shortages as well as the possible implications of the measures announced by the Minister of Finance and Economic Development on Tuesday the 29th of July 2003. An attempt will be made to forecast how well the monetary policy measures are likely to perform given the nature and magnitude of the problems it is meant to address. Whereas the problems bedevilling the economy may have several dimensions, we will not be drawn into argument as to the significance of each of the components since the pre-occupation of this paper is a solution package for the current cash shortages. It is the deliberate intention of this paper to discuss the short-term, implications of the solutions in place by relying on the observation method and a historical comparative approach.