Central Bank Quasi-Fiscal Losses and High Inflation in Zimbabwe [electronic resource] : A Note / Sònia Muñoz.
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TextSeries: IMF Working Papers; Working Paper ; No. 07/98Publication details: Washington, D.C. : International Monetary Fund, 2007Description: 1 online resource (20 p.)ISBN: 1451866623 :ISSN: 1018-5941Subject(s): Central Bank | High Inflation | Monetary Fund | National Deficit Surplus | Open Market Operations | Quasi-Fiscal Deficit | ZimbabweAdditional physical formats: Print Version:: Central Bank Quasi-Fiscal Losses and High Inflation in Zimbabwe : A NoteOnline resources: IMF e-Library | IMF Book Store Abstract: 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.
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.
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