MONETARY REMEDY FOR THE ANGOLAN ECONOMY IN THE FRAMEWORK OF COMBATING THE EFFECTS OF COVID-19

Abstract

The purpose of this article is to assess the impacts of the monetary policy instruments adopted in Angola, within the framework of covid-19. Despite the vast literature associated with the understanding of inflationary processes, the option is to use the quantitative currency equation as a starting point, that is, the article presents the confrontation of two approaches, on the one hand, Milton Friedman's monetarists and on the other side the Structuralism of Raúl Prebisch. Based on the quantitative theory of money, Milton Friedman presents inflation as a purely monetary problem, while Prebisch, based on the fundamental assumptions of the market, presents inflation as well as a result of changes in real variables. The article ends by making a relatively historical incursion. inflation in Angola during the first quarter of 2020, showing that the monetary remedy for Angola should in fact result from a combination of the two approaches.