ISAAH MHLANGA: Zombie economics is the road to ruin for SA
These ideas purport to champion the very people who will bear the brunt of the devastation that follows
The Covid-19 pandemic and resultant economic crisis that continues to ravage lives and livelihoods has revealed what Nobel laureate Paul Krugman calls “zombie ideas” about economic policy. These are ideas that have been thoroughly refuted by empirical evidence as not worth pursuing, but refuse to die, being continually reanimated.
In SA we have had zombie fiscal policy ideas for some time; they revealed themselves after the 2008 global financial crisis and paved the road to the IMF.