Reasons for inflation in pakistan and globally, a serious thread

[ziaulislam]

Since CPI has consistently been near 10% highest in 10 years, (2008-10 during global economic crisis it was 23%) what are the reasons behind it?


First what is inflation?

In simple terms it is too much demand for an item..demand can either be due to lack of productivity or too lose monetry control(i.e increasing rupee value)


IK incompetence? Since devalution happened in 2018 end inflation should happen before devalution. This is called temporal mismatch where cause happen after the event
Devaluation?
Inability to print dollars fill in deficit?(we should import a machine)?
Decreasing inflows (remittences stagnant,exports decrease) from 2013-2018?
Lack of productivity?


PS

Since overseas pakistan know nothing they cannot vote.

I am going to vote since i am in pakistn technically i am not overseas currently, but anyone not in pakistan dont vote you guys cant vote anyway..suckers..

 

[Maula Jatt]

Just because you said serious thread
I voted for MNS

 

[ziaulislam]

Just because you said serious thread
I voted for MNS

Hmm...I mean no votes so far for importing a dollar printing machine
That would be good fix

 

[RealNapster]

Hmm...I mean no votes so far for importing a dollar printing machine
That would be good fix

Done that.. phul sapporrtttt saarrrr

 

[Enigma SIG]

I find that the ability not to print dollars has to do a lot with inflation. Maybe the US can lend us a few of their machines. So Pakistanis can import more cars, cheese, doritos and dipping sauce.

 

[ziaulislam]

Dollars needed be it the arabs, exports, remittences and inflows via AB WB IMF

But quickest fix is to call JPOWEL and ask him to lend dollar machines

 

[IbnAbdullah]

Salaam

Just because the alternatives are worst, doesn't mean IK is competent. I believe IK has some strong points and NS and AAZ lot are just outright theives, but IK certainly has his share of contribution to this issue.

Until a better alternative presents itself - anyone who isn't from NS and AAZ/Bhutto lot - I'd stick with IK. However, it would be out of necessity rather than thinking IK is an excellent leader.

With regards to inflation, having a lot of money getting pumped in woth limited increase in productivity will cause inflation. Some problems are inevitable but some can be avoided with better management.

The government, for instance, has to be proactive in tackling hoarding rather than waiting till these people have massively profited from market manipulation through creating artificial shortages.

The government seems to lack proper planning when it comes to predicting demand highs and just tries to deal with issues as they come up.

The current fertilizer shortage/hyperinflation at the time of wheat planting (along with insufficient support price increase) will most likely lead to a wheat shortage in the coming year. Why is there a urea shortage when it is produced in Pakistan? Why wasn't the demand predicted?who is in charge of planning and who will be punished for the incompetence?

 

[Communism]

Depends on how the inflation is calculated.

The 5-6% inflation number reported in the U.S. is a totally made up manufactured number.

You need to look at the producer price index, case shiller home price index, baltic dry freight index, corn futures, wheat futures, etc and make your own CPI.

For instance, between October 01 2020 and October 01 2021, the non-seasonally adjusted commodity producer price index is roughly %22.239 increase, despite the more manipulated numbers saying otherwise.

 

[VCheng]

I find that the ability not to print dollars has to do a lot with inflation. Maybe the US can lend us a few of their machines. So Pakistanis can import more cars, cheese, doritos and dipping sauce.

Pakistan can always adopt the Ecuador/Zimbabwe model for its currency if it so chooses:

The U.S. dollar isn’t just the official currency of the United States. It is the official currency of several other countries and territories, including:

Caribbean Netherlands
East Timor
Ecuador
El Salvador
Federated States of Micronesia
Marshall Islands
Palau
Zimbabwe

 

[AgnosticIndian]

Pakistan can always adopt the Ecuador/Zimbabwe model for its currency if it so chooses:

but that's just using dollars, elites have adopted that model long ago. the issue is *printing* dollars rather than having to earn it.

 

[VCheng]

but that's just using dollars, elites have adopted that model long ago. the issue is *printing* dollars rather than having to earn it.

Anything USA can do, Pakistan could do too, I suppose.