ECONOMISTS have advised the Bank of
Local and international economists said such would impact on the strength of the local currency.
"If government prints money faster than the growth of real output, it reduces the value of money and this invariably causes inflation," local economist,
"If we print more money, prices will rise such that we are no better than we were before. To see why, we will suppose this is not true, and that prices will not increase much, when we drastically increase the money supply.
"Let us suppose
He reasoned, "Some of that money will be saved, some might go toward paying off debt like mortgages and credit cards, but most of it will be spent. This will automatically fuel inflation in the country."
The warning follows revelations that BoG was wantonly printing more money to finance the country's growing deficit which hovers around 10,2 percent.
According to the
The currency has fallen 21 percent since the start of the year.
"Even the bank has exhausted its two times full year currency printing limit," the agency stated.
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