With respect to developments in the domestic economy, you are aware that Botswana did not escape the effects of the global recession. However, the on-going global economic recovery has led to a rebound of economic activity, particularly in the third quarter, compared to the first half of the year, when there was no diamond production.
Rethinking the definition of price stability Consider first the ECB’s definition of price stability as inflation rates of “below, but close to, 2%”. A simple answer to the current challenges would be to lower the inflation aim. If my dissection of the current inflation drivers is vaguely on the right track, then it is clear that this strategy would be wrong on many levels.