oa Fundamina : A Journal of Legal History - Stimuli regarding a projected monetary union in the Southern African development community
Over the years many African countries reformed their financial systems and their economies in order to form part of the international markets that should benefit their economies, but according to Fischer et al ""[a]n important task facing the authorities in these countries is to reduce the perceived risk of policy reversals by providing credible commitments and increasing the cost of reneging on these commitments"". One of the ways that African countries can address this, is to show its political commitment to change. This can be done by joining regional trading arrangements and organisations, establishing independent central banks, ensuring capital account convertibility and promulgating internationally acceptable investment charters. By doing this African countries are introducing measures that can be used to counter and remove or at least reduce some of these risks. This will enhance the prospects of prospective investors in their economies and improve the living conditions of their own inhabitants.
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