A study raised how it could be reduced to a single digit by 2031

Inflation: how to reduce it and reach 2031 in single digits

The countries considered are: Ecuador, Sao Tome and Principe, Sudan, Cambodia, Lebanon, Mongolia, Albania, Belarus, Jamaica, Peru, Romania, Turkey, Uruguay, Poland, Sierra Leone, Angola, Guinea-Bissau, Mozambique. Uganda, Russia, Israel, Mexico, Serbia, Moldova, Zambia, Ghana and Costa Rica.

Of all those countries, Ecuador was the country that took the least time to beat inflation, dollarization, while the country that took the longest was Costa Rica, with a record of 27 years.

“identify”Successful disinfection“As one, having reached an inflation rate of between 80% and 200% annually in a given year between 1980 and 2022, three consecutive years of a single-digit inflation rate are reached,” the report stated.

He himself noted that “the range of 80% to 200% was chosen to find inflation rates similar to those of Argentina (which finished 2022 at 94.8%) and also to exclude hyperinflation from the analysis, because of the evidence that it is – paradoxically – ‘easier’ to lower inflation.” Once hyperinflation is unleashed, as evidenced by the case of Argentina in 1990.”

The consultant suggested it A recent study by the International Monetary Fund (IMF) shows that in Latin America, starting in the 1990s, “inflation has been relegated to the history books” in most countries.

The newspaper said, “The study found that the reason for the success was the monetary reforms that it implemented, including Argentina, Ecuador, Chile, Peru, Mexico, Brazil, and others.”

The common elements of successful economic plans are:

• a A new narrow central bank mandate Focus on the stability of the purchasing power of the currency.
• the independence and autonomy of the central bank, Where not only does the monetary body set its goals and protect itself from political pressure, but in many cases direct financing of treasury deficits has been “severely restricted or outright prohibited by constitutional mandate in Chile, Colombia, Ecuador, Guatemala, Mexico and Peru, among other countries”.
• Finally, A.J Greater transparencyin which central bankers are forced to appear before Congress and before society for their actions, achievements, and failures.