Would bond notes present an opportunity for local businesses operating in Zimbabwe?

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There is a school of thought which say you need to create demand so that supply can increase. The Keynesian school of thought is precisely based on the assumption that demand create its own supply. The bond notes will create demand, prior demand was depressed because of the liquidity crises. There were a few buyers but now as more people get bond notes demand will increase. The introduction of bond notes will increase 

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Public financial transparency and accountability of government revenues and expenditures in Zimbabwe

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Zimbabweans are familiar with budget statement presented by the Minister of Finance in the parliament every year but unfortunately the public has never received detailed financial statements after expenditure. Zimbabweans usually know the amount which is allocated to certain ministries such as health, education social welfare but the public has never received financial reports detailing how the money was used. The lack of financial reporting means that the public has no information to make the government accountable. Accountability has been viewed since time immemorial as a channel for ascertaining the use of power by an individual or an organization that has been entrusted with the task of performing prescribed tasks (Premchand 1999).  Kautilya wrote a manual on bureaucracy before the Christian age, he observed that human nature was disposed to acquire public money for private gain. He wrote: “Just as it is impossible not to taste honey or poison that one may find at the tip ...
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Understanding Zimbabwe’s budget deficits, government debt and economic effects

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The policy that ‘we eat what we kill’ was made popular in Zimbabwe during the Global Political Agreement period when Tendai Biti was the Minister of Finance. This is a principle advocated for by balanced-budget proponents. On the contrary governments also run budget deficits I have dedicated this article to explain the concept of budget deficits. A budget deficit the amount by which public spending exceeds revenue over a particular period of time. The Zimbabwean government is currently running budget deficits. The harmful effects of running budget deficits include; crowding out of the private sector, high real rates of interest, low national savings, low economic growth rates, large current account deficits and inflation, among others. John Maynard Keynes holds that in times of severe economic shriveling in the private economy, it is tolerable for the government to go into debt and increase spending to compensate for the fall in consumer and other private sector expe...
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Will Zimbabwe's dedollarization efforts through bond notes succeed?

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The recent introduction of a new currency by Zimbabwe’s central bank the Reserve Bank of Zimbabwe (RBZ) result in a process called reverse dollarization. Baliño, Bennett, and Borensztein (1999) note that reversing dollarization may be difficult because changes in practices regarding the settlement of transactions may be a slow process that depends on institutional changes and takes place only when there are significant benefits to be gained by switching currencies. The process will not be easy as people’s preferred choice of holding and storing value remains United States dollars and not the surrogate currency. There are no significant benefits to be gained by switching from foreign currency to bond notes. Forced dedollarization has had limited success, while dollarization may have fallen in the short run and was sustained in some cases, countries that tried to force dedollarization experienced financial disintermediation and capital flight (Menkulasi, Erasmus, & Leichter, 2009)...
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