Controlling inflation: current economic dilemmas
Posted: Mon Dec 09, 2024 7:20 am
Prices are rising at a rapid pace, with signs of inflation in different countries around the world. Germany is at its highest level in almost half a century. But so are the United States, the United Kingdom and other European countries.
In Latin America, the cost of living is rising and warnings are being raised. Countries such as Chile (with an inflation rate of 13.1%), Brazil and Colombia have seen double-digit increases.
One of the most common measures to curb inflation is gambling data singapore for central banks to raise interest rates to curb purchases and control prices.
However, this fiscal and monetary policy may lead to an economic recession.
In this balance, economists must find a middle ground between inflation and recession. However, controlling inflation is necessary to achieve national economic stability.
According to Juan Carlos Martínez, professor of economics at IE Business School in Spain, "a recession is a lesser evil compared to persistent inflation in the economy," he told BBC Mundo.
The director of Mexico's Institute for Industrial Development and Economic Growth (IDIC), José Luis de la Cruz, also commented that recessions tend to last less time, and controlling high inflation can take many years.
Inflation also tends to affect the most vulnerable groups, who have less money saved and a large majority of whom work in informal services. In Latin America, these effects can be even more serious for society.
Control of fuel prices
According to Nobel Prize winner in economics Joseph Stiglitz, inflation is a supply problem and more needs to be invested in supplies.
UN Secretary-General António Guterres said: "It is immoral for oil and gas companies to make record profits from this energy crisis at the expense of the poorest people and communities and at enormous cost to the climate."
António Guterres recalled that the combined profits of the largest energy companies reached around 100 billion dollars in the first quarter of this year and considered that there should be a tax on these profits.
"I urge all governments to tax these profit surpluses and use the funds to support the most vulnerable people in these difficult times," he said.
FUNIBER promotes studies for professionals interested in continuing their training. Some programs in the business field are:
In Latin America, the cost of living is rising and warnings are being raised. Countries such as Chile (with an inflation rate of 13.1%), Brazil and Colombia have seen double-digit increases.
One of the most common measures to curb inflation is gambling data singapore for central banks to raise interest rates to curb purchases and control prices.
However, this fiscal and monetary policy may lead to an economic recession.
In this balance, economists must find a middle ground between inflation and recession. However, controlling inflation is necessary to achieve national economic stability.
According to Juan Carlos Martínez, professor of economics at IE Business School in Spain, "a recession is a lesser evil compared to persistent inflation in the economy," he told BBC Mundo.
The director of Mexico's Institute for Industrial Development and Economic Growth (IDIC), José Luis de la Cruz, also commented that recessions tend to last less time, and controlling high inflation can take many years.
Inflation also tends to affect the most vulnerable groups, who have less money saved and a large majority of whom work in informal services. In Latin America, these effects can be even more serious for society.
Control of fuel prices
According to Nobel Prize winner in economics Joseph Stiglitz, inflation is a supply problem and more needs to be invested in supplies.
UN Secretary-General António Guterres said: "It is immoral for oil and gas companies to make record profits from this energy crisis at the expense of the poorest people and communities and at enormous cost to the climate."
António Guterres recalled that the combined profits of the largest energy companies reached around 100 billion dollars in the first quarter of this year and considered that there should be a tax on these profits.
"I urge all governments to tax these profit surpluses and use the funds to support the most vulnerable people in these difficult times," he said.
FUNIBER promotes studies for professionals interested in continuing their training. Some programs in the business field are: