THE current shortage of bank notes is definitely a blessing in disguise. For some time I thought it was a deliberate policy by the RBZ, but now I know that this is not the case because even government spokesmen view this as a bad move.
The way I see it, it is not a bad situation at all. I look at it as an attempt to arrest the current economic decline through “supply-side” economics.
Popularised by Ronald Reagan in the 80s, this school of thought says that to manipulate the economy in a particular direction, government only needs to concentrate on the supply side and everything else will fall in place. So instead of chasing our own tails legislating against the black market, and going for symptomatic treatment, a holistic approach would have seen this move being factored in as part of economic recovery strategy.
Indeed, I urge the RBZ to continue the squeeze on money supply. Black marketeers do not trust cheques, even bank certified ones and if there is no money to pay for their illegal goods, then they will be stuck with them and the only option would be for them to bring those products on to the formal market.
I do not claim to be an economics fundi, so can we have comment on this one from real economists (not Sam Undenge whose theories are motivated only by the desire to become the RBZ governor).
Could the limited supply of ready cash on the market curtail the black market or not?