Agricultural pricing policy in Eastern Africa: a by Christopher D. Gerrard, Greg D. Posehn, Granville Ansong

By Christopher D. Gerrard, Greg D. Posehn, Granville Ansong

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Extra resources for Agricultural pricing policy in Eastern Africa: a macroeconomic simulation for Kenya, Malawi, Tanzania, and Zambia, Part 76

Example text

It can prohibit residents from owning foreign currency, in the form of notes or external accounts; it can require exporters to surrender all earnings of foreign exchange to the Central Bank immediately; and it can establish a licensing system for importers and for external travelers. All these actions reduce the demand for foreign exchange, while a licensing system rations the remaining excess demand for foreign currency according to some priority ranking. Typically, food and fuel are near the top of the priority list; luxuries are near the bottom.

Posehn, Granville Ansong.  cm. (EDI technical materials) Includes bibliographical references.  Title.  Series. EDI Catalog No. 030/164 Page iii Contents Foreword v Acknowledgements vii 1. Introduction: A Guide to Participants 1 2. Historical Background 3 3. Theoretical Background 9 Agricultural Development Policies 9 Economic Stabilization Policies 11 Trade and Macroeconomic Policies 12 Food and Agricultural Price Policy 20 Questions for Participants to Consider 22 4. Establishing Macroeconomic and Agricultural Pricing Policies: An Exercise in Small-group Decision-making 23 The Current Crisis 23 Agenda 26 Descriptions of Roles 33 5.

For example, in the absence of external balance, and in particular with a persistent foreign exchange deficit, a country will be forced to adopt quantitative restrictions and controls on foreign exchange which, if more or less permanent, will adversely affect both the import and the export sectors of the economy. Similarly, a lack of internal balance will lead to government policies, such as incomes' policies, which are reactions to the symptoms and not to the causes of the problem, and which, if more or less permanent, will adversely affect, among other things, the nature of private investment, since accelerating inflation discourages productive private investment when the returns to speculation begin to exceed the returns to production.

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