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Wednesday, December 6, 2023

How is inflation treated?

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In our country, where elections always take place, there is a great temptation to turn the precision into a ring where the political parties will resolve their differences. President Anastasiadis is doing well, convening a National Council and for & # 8217; this. However, he should know that the solutions are exactly bitter. In fact, with 9.1% inflation in May, there is no other solution than increasing productivity as many “cockfights” as we have. Everything else is “painkillers”. Useful and especially for those who “hurt” more but the real solutions require seriousness and political cost. As long as the aspiring Presidents do not turn their backs, this year we will all look for him next.

The avalanche of inflation that frightens the authorities and puts pressure on them to take things for granted: For the central banks it is to pursue a more restrictive monetary policy and for the governments a less expansionary policy. None of these are popular. Everyone likes to share money, but either it ends at some point or it loses its value. 2013 is over for us, now it is just worth less. Is it for & # 8217; which is now a matter of weeks to see interest rates in the eurozone rise and expansionary policy end. The problem, however, is that as a state we must also turn our attention to spending and productivity. In other words, incentives and political direction must be given to save resources and increase productivity. Incentives for renewable energy are the most massive we have. Circumstances, however, require more. This is the opportunity for every home to have its own photovoltaics, this is the opportunity for employees to use public transport or other ways to get to their workplaces. In Germany the monthly use of the bus was reduced to nine euros. Anyone who can not stand the two euros per liter of gasoline should do some of his trips by bus and not subsidize the car. These, and others like it, such as setting the air conditioners at 27 degrees Celsius decided by the Spanish government for public buildings will be measures that will come sooner or later. Let's get it now before it's too late.

In other words, the state should follow the example of households and businesses, which reduce their unnecessary consumption and, by its example, push society towards savings. The support of vulnerable groups is good and the state that does not support us all does well, throwing more money in the market. The only thing that would succeed would be for the value of money to fall further. Is it for & # 8217; what the 100 million announced by the Minister of Finance during the week should be combined with proposals for consolidation of expenditures, targeted reduction of consumption where it does not hit vulnerable layers, but also a clear message to society that we must enter a position of defense and self-preservation. How now does not matter the percentage of growth, but its quality characteristics and the real growth prospects it can create. That now is not the time to “waste our money”, public or private, but to keep forces to withstand the adjustment. In other words, accuracy will change our financial model and we will have to adapt to the data and not expect it to do us the favor of adapting to us. Is it for & # 8217; what requires collective effort and broad political consensus. Is it for & # 8217; that each of us should take on our own responsibilities towards ourselves and society.

Source: politis.com.cy

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