A decision that would be frightening japan telegram data in its irrationality and would call into question the prictability of macroeconomic and financial conditions.
More specifically, a sharp rate cut in conditions. Of high inflation will automatically make it clear to everyone. The economic authorities don’t care about the purchasing power. Of the national currency. Citizens will rush to withdraw money from deposits. Take out consumer loans and buy goods, since deposit. Rates will no longer compensate them for future inflation, and future inflation will devalue debts.
Businesses will also start to accumulate
stocks of materials in a frenzy, because they know that products made from them can be sold at a higher price. All this will push prices up by tens of percent. And in addition to this, everyone will rush to buy foreign currency, the exchange rate will weaken. Long-term lending in national improv customer service: top 6 tools for success currency will simply disappear, and the financial system will become foreign currency-bas due to the unprictability of future inflation.
All cases of prolong, persistent
high inflation are the result of unreasonably soft monetary policy. The most recent example, which is well known alb directory to everyone, is Turkey. Turkish economists at some point decid not to raise the rate to combat rising prices, but, on the contrary, to lower it.