The post Zimbabwe’s Gold-Backed Token Won’t Fix Inflation, Says Expert appeared first on Coinpedia Fintech News
Experts argue that in order to address Zimbabwe’s currency instability effectively, it is crucial to implement prudent macroeconomic strategies. They emphasize the significance of measures such as increasing interest rates and reducing deficits, which can play a key role in stabilizing the Zimbabwean dollar. Although the introduction of a token by the Reserve Bank of Zimbabwe earlier this year aimed to restore stability, researchers suggest that the token alone cannot resolve the underlying problem of money supply growth. Instead, they stress the importance of implementing sound macroeconomic policies, such as raising interest rates and reducing the deficit, to effectively tackle the currency instability issue.
