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Showing posts from February, 2017

Myths of the Bond Notes

We have had the bond notes in circulation since October 2016. It is important that we look at what the critics and opponents of this piece of monetary policy were saying and how the bond notes have fared so far. The value of bond notes in circulation is now US$80 million. The public has accepted the so-called token currency. The aim of this post is to debunk the myths and highlight the politicization of the bond notes issue. I hope this helps in boosting confidence into the general public on the bond notes.
The opponents of the bond notes cited a 16th-century economist, Thomas Gresham, who said that bad money chases away good money. The assumption from these bush economists was economic theories are cast in stone and can remain true even after five centuries of social,economic and technological advancements.To say the GreshamLaw applies to gold coins and to try and compare it to bond notes is like stretching the theory too far.

It was assumed that the bond notes were the…