Copper Currency Anchor: The solution to Inflation and Debt

Zambia’s dependence on copper mining, both the world copper price and the possible withdrawal of investment from the mining sector seriously threaten economic growth and stability. Zambia, like other copper producers, took the high late 1960s copper price as the norm and regarded the mid-1970s mineral price fall as an aberration. It adjusted by foreign borrowing rather than by structural change. Consequently, when the early 1980s price shock drove copper revenues even lower, Zambia had little room for maneuver. Commodity currencies have been stood against fiat money in the discourses…

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