Professor Ljubodrag Savic: This is not the end of inflation, but A BREAK before the storm

Professor of the Faculty of Economics in Belgrade Ljubodrag Savic said today that this was not the end of  inflation, but a break before the storm.

“I do not think this is the end of inflation, I would rather say that it is a break before the storm. I would be very optimistic if I said that we knew what was happening, that we knew that what was happening in Ukraine was going to end. This is going towards escalation, an increasing number of countries in the world are getting involved in it, this crisis has been postponed due to this warm year,“ Savic told RTS.

He added that no one could say how long the crisis would last, whether there would be another war somewhere in the area, and even if there was no war, in economic terms, a part of the world had gone a decade and more backwards.

The greatest damage, as he said, is suffered by Ukraine and Russia, primarily in human sacrifices, but in economic terms the greatest damage is suffered by Europe.

Savic pointed out that the economy was now affected by combined inflation and recession, i.e. stagflation, and that this was the worst possible situation in which an economy could fall.

„Now we have inflation that has joined what is happening to us and the best measure and the most commonly used measure in the fight against inflation is raising the key policy rates, that is, increasing the price of money, which should stop demand, but the problem with this measure is that it has a very bad effect on production,“ Savic said.

Izvor: BIZLife

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