Financial Economics and Financial Literacy

Price stability contributes to achieving high level of economic activity and employment. Price is a key function in making investment and consumption decisions. Zimbabwe needs a monetary policy which addresses the key issues of price stability to enable economic recovery and growth. The economic solution lies in addressing the currency crisis. A change of monetary system such as implementing dollarization is a possible option to deal with macroeconomic instability and uncertainty.  The stability of inflation and interest rates result from the success of the monetary policy in maintaining price stability. Prices differ across countries mainly due to the differences in the cost of doing business. Zimbabwe has high cost of doing business which significantly influences the level of prices and makes the country’s exports uncompetitive. The country is importing most products therefore any movement in exchange rates such as the strengthening of the South African Rand influence the level

                                                        Zimbabwe had a change of government in November 2017 which brought optimism that the economy might be guided on a recovery path following depression for several years since the turn of the millennium. Operation restore economy has not been launched and some people have already started to lose faith in the current administration’s ability to turn around the economy whilst some still believe the economy will be revived and grow again. There is no clear economic vision or policies which have been implemented yet by the government. The industry and firms which had closed have not reopened and the economy seems to be still in a dysfunctional state. It is the hope of Zimbabweans that they will one day have a vibrant economy, employment and the dilapidated infrastructure will be rebuilt. The process to rebuild the economy will not be an easy one it will require the determination, will and unity amongst the Zimbabweans to rebuild t