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Forgotten first principle of economics?

I’M flabbergasted at Eric Bloch’s comment “The election and Homelink”, (Zimbabwe Independent, April 1) that some external Zimbabweans are showing “unjustified contempt” for the RBZ by preferring the &#8

220;illegal” parallel rate to the RBZ’s Homelink rate.


Bloch is a noted economist but clearly seems to have forgotten the first principle of economics: Don’t mess with the iron laws of supply and demand.

It is everyone’s right to maximise their own value and only short-sighted, warped judgements make such parallel activity “illegal” in Zimbabwe.


Instead of upholding the current bankrupt RBZ system which will fail for no other reason than that it will never grow enough fingers to plug all the holes in the dyke, Bloch would do better to advise the RBZ to swallow the bitter pill.


Massive devaluation is inevitable. Let the auction be an auction. Let supply and demand determine one free market exchange rate.


This might just save what little is left of Zimbabwe’s productive sector and attract diaspora and other money “legally”.


S Ingram,

Harare.

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