Do we live on the same planet?
The public statements of the Bank of Namibia reveal a serious problem of understanding at the helm of the institution.
There are two aspects which get normal people worried: First of all the description of the Namibian economy as being ‘broadly satisfactory’, ‘encouraging as economic growth is expected to continue and inflation will remain at satisfactory levels’. Are the officials at the bank living in the same Namibia as most of us who try to cope with the economic hardship ??
This leads to a second observation: The term ‘(un)employment’ doesn’t occur in the Bank of Namibia’s statements. Read in comparison the first sentences of America’s Federal Reserve Open Market Committee. It ‘is firmly committed to … promoting maximum employment, stable prices and moderate long-term interest rates’.
America’s Fed sees two percent inflation as a goal as well as six percent unemployment. The Bank of Namibia is happy with six percent inflation and proud of five percent growth whatever that means in the real world. If the US sees a factor of three between inflation and unemployment one may conclude the BoN has to accept 18 percent unemployment ?!
Inviting money market brokers through high interest rates to stabilize the South African Rand is not the mandate of the BoN. Even the American Fed isn’t stabilizing the mighty US$, just the prices! Please, Bank of Namibia, review your vision and mission ! Just some thoughts … Andreas Peltzer Catholic theologian