ERIC Bloch has written extensively on the need for devaluation.
His economic arguments are clear and compelling. That the Zimbabwe dollar is grossly overvalued is obvious to everyone.
economic analysis again fails to deal with the realities of the Zimbabwean situation, thus he has failed to mention the most important reason why there has not been any significant devaluation.
The market distortions, such as exist for foreign currency, fuel and other commodities, create too many opportunities for the chefs to add more millions to their already bulging bank accounts. It is they who create the market distortions and they who subsequently exploit them for personal gain.
If the governor of the Reserve Bank is a man of integrity, and if he genuinely wants to see an economic turnaround, then there is only one course of action for him to follow: resign and join the struggle to rid Zimbabwe of those who have destroyed it economically, politically and socially.
Any economic analyst whose analysis ignores our political realities is like a local doctor who prescribes the latest medications for destitute patients.
It’s the politics, stupid! Any analyst who fails to grasp this simple truth will always remain stuck in never never land.