Economic expert Mohamed Naseem (Nafa Naseem) has stated that the root cause of inflation is the printing of money.
Naseem said today that the root cause of inflation is the printing of money, according to economists. However, he said that money printing is linked to other parts of the economy and it is a big challenge for a developing country to solve these issues.
Naseem said money printing can be stopped by balancing two things: increasing revenue and moderating expenditure.
"It's a huge challenge in developing countries," said Naseem.
The prominent economist has speculated that the type of the current inflation in Maldives is "cost-push inflation". He said as energy prices in the world market rise and transportation prices rise and supply decreases, the prices of goods and services will rise.
Noting that changes in the prices of goods and services are the result of economic and trade policy, Naseem said it is not something done by the government.
However, Naseem said trying to mitigate the effects of inflation is part of the government's fiscal policy, adding that people should abandon the practice of blaming everything on the government.
Some local businessmen say the rise in the prices of goods in the Maldivian market is due to rising energy prices in the global market, transportation and cargo costs, changes in service prices and taxes, as well as the US dollar price being maintained at over MVR 17 in the black market.
Naseem said today that the root cause of inflation is the printing of money, according to economists. However, he said that money printing is linked to other parts of the economy and it is a big challenge for a developing country to solve these issues.
Naseem said money printing can be stopped by balancing two things: increasing revenue and moderating expenditure.
"It's a huge challenge in developing countries," said Naseem.
The prominent economist has speculated that the type of the current inflation in Maldives is "cost-push inflation". He said as energy prices in the world market rise and transportation prices rise and supply decreases, the prices of goods and services will rise.
Noting that changes in the prices of goods and services are the result of economic and trade policy, Naseem said it is not something done by the government.
However, Naseem said trying to mitigate the effects of inflation is part of the government's fiscal policy, adding that people should abandon the practice of blaming everything on the government.
Some local businessmen say the rise in the prices of goods in the Maldivian market is due to rising energy prices in the global market, transportation and cargo costs, changes in service prices and taxes, as well as the US dollar price being maintained at over MVR 17 in the black market.
