Experts Call for Tighter Fiscal Policy to Enable Fight Against Inflation
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Current economic situation calls for reducing inflation first, not pursuing rapid growth. Raising interest rates ineffective due to government's expansionary fiscal policy.
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Government should reduce spending to control deficit so monetary policy can be effective in reducing inflation.
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Defer expensive ML-1 railway project as it would increase foreign debt burden. Focus should be on investments that boost exports.
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Over the years, policies undertaken without considering external viability. Resulted in unsustainable imports, stagnant exports and mounting foreign debt.
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Real estate amnesty allowed tycoons to park tax-evaded money in property. Impact on current account deficit, tax revenues and exports not analyzed.