tag:blogger.com,1999:blog-24178373.post3858258442472044135..comments2023-11-05T10:03:05.715+02:00Comments on pesa tu: pesa tuhttp://www.blogger.com/profile/13489188603541487272noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-24178373.post-79996099172339456882007-02-14T18:48:00.000+03:002007-02-14T18:48:00.000+03:00@mainat: Yes,monetary policy is required But when ...@mainat: Yes,monetary policy is required But when u have 70s style stagflation extra is neededpesa tuhttps://www.blogger.com/profile/13489188603541487272noreply@blogger.comtag:blogger.com,1999:blog-24178373.post-20196594152732924512007-02-14T18:47:00.000+03:002007-02-14T18:47:00.000+03:00@Mwasjd:Price controls in a poor country like ours...@Mwasjd:Price controls in a poor country like ours would lead to another GOLDENBERG.In fact, the Exchange control sytem is one of the causes.<BR/><BR/>ZIM-they need to devalue the currency ,remove price controls, issue a new currency and restore international monetary relations.Museveni did the same when he took over Ugandapesa tuhttps://www.blogger.com/profile/13489188603541487272noreply@blogger.comtag:blogger.com,1999:blog-24178373.post-10185223220405284152007-02-11T17:40:00.000+03:002007-02-11T17:40:00.000+03:00I think if you look at what it is that causes infl...I think if you look at what it is that causes inflation (outside of oil prices), you will notice that its too much liquidity in terms of a lot of money chasing too few profitable/high return opportunities. So beyond doing the things you've mentioned above to create the environment for such opportunites to arise, the govt can use the normal monetary policies at its disposal i.e. interest rates.<BR/>Price controls are only useful if there is an actual shortage of the goods that cause the price rises. Otherwise they distort any market.MainaThttps://www.blogger.com/profile/12266497232119983697noreply@blogger.comtag:blogger.com,1999:blog-24178373.post-87522070460504239352007-02-11T00:57:00.000+03:002007-02-11T00:57:00.000+03:00I figure with Woodside packing up, chances of Keny...I figure with Woodside packing up, chances of Kenya avoiding inflation due to oil prices are near nil. Which brings the question of govt control. If the govt controlled prices of food and fuel, does that help limit inflation? Or because we operate in a free market economy (globalization), such a move would act retrogressively to the economic growth, and prices would EVENTUALLY rise?<BR/><BR/>What about Zimbabwe's case, any ideas on what measures can be taken to reverse the 1000+% inflation?mwasjdhttps://www.blogger.com/profile/10398203325237099562noreply@blogger.comtag:blogger.com,1999:blog-24178373.post-7030804964901628302007-02-10T09:42:00.000+03:002007-02-10T09:42:00.000+03:00Yes,the time lag is part of the reason why rate cu...Yes,the time lag is part of the reason why rate cuts or rises take time to affect the economy.<BR/><BR/>We need to ivest more in infrastructure and less in the soft sectors like education.Since, the effects of education take more than 5 years to see BUT the effects of good infrastructureare within 12 months of project completionpesa tuhttps://www.blogger.com/profile/13489188603541487272noreply@blogger.comtag:blogger.com,1999:blog-24178373.post-69838451338408673762007-02-09T22:05:00.000+03:002007-02-09T22:05:00.000+03:00Unfortunately, food & transport costs vary substan...Unfortunately, food & transport costs vary substantially across from season to season & among different socio-economic groups...<BR/><BR/>The fluctuating price of oil is part of the reason. Food production varies by season.<BR/><BR/>Nevertheless, the underlying inflation will capture the "permanent" effect of changes in food & transport as the price of other goods & services increase. The problem is the lag time...<BR/><BR/>We need to tame inflation... How?<BR/>- Increase competition e.g. telecoms. New players will force the cost down. After Telkom introduced RUIM, both Celtel & Safaricom have reduced prices.<BR/>- Rebuild infrastructure. This will decrease business costs e.g. transport of goods, less time wasted o journeys, faster processing of passengers thru JKIA, etc...coldtuskerhttps://www.blogger.com/profile/11310224592572460759noreply@blogger.com