SUNDAY, NOVEMBER 30, 2008
The Reserve Bank of Zimbabwe Commends US and UK Authorities for Following Its Lead

You simply cannot make this up. I found a section of this priceless commentary from the Reserve Bank of Zimbabwe via Marc Faber's latest newsletter (hat tip reader Dean), and had to verify it. The original provides an even richer mine of material.

From the Reserve Bank of Zimbabwe (boldface theirs):
As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their National interests.

That is precisely the path that we began over 4 years ago in pursuit of our own national interest and we have not wavered on that critical path despite the untold misunderstanding, vilification and demonization we have endured from across the political divide.

Yet there are telling examples of the path we have...For instance, when the USA economy was recently confronted by the devastating effects of Hurricanes Katrina and Rita, as well as the Iraq war, their Central Bank stepped in and injected life-boat schemes in the form of billions of dollars that were printed and pumped into the American economy.

Yves here. The authorities here would counter that the Katrina-related stimulus was appropriate in light of the macro shock, while Zimbabwe has taken a good construct beyond the breaking point. Billions, after all, are not a big deal in a $14 trillion economy. A difference in degree is a difference in kind.

Back to the Reserve Bank:
....the USA economy confronted a severe mortgage crisis... The USA Central Bank again responded by injecting over US$160 billion between December, 2007 and March, 2008.... leading central banks in the global economy are bailing out troubled economic sectors to achieve macroeconomic and financial stability....the Bank of England... providing a £50 billion lifeline to the UK’s banking sector.

Here in Zimbabwe we had our near-bank failures a few years ago and we responded by providing the affected Banks with the Troubled Bank Fund (TBF) for which we were heavily criticized even by some multi-lateral institutions who today are silent when the Central Banks of UK and USA are going the same way and doing the same thing under very similar circumstances thereby continuing the unfortunate hypocrisy that what’s good for goose is not good for the gander....

As Monetary Authorities, we commend those of our peers, the world over, who have now seen the light on the need for the adoption of flexible and practical interventions and support to key sectors of the economy when faced with unusual circumstances.

Of course, in the short-term such interventions are without doubt inflationary but in the medium to long-term they trigger and propel economic growth and development that everyone craves for....(more at link)