However, it cannot be confirmed that the current plans that Government in social affairs are enough to boost the economy as a whole in a complex context like the current one.
“An expansionary monetary policy would be needed, that is, if the intention of the bank of the Republic if there were no recession, he would have to cut interest rates, but his priority now is: lower inflation and the price will continue to rise,” he says.
Useche acknowledges that this rise could be a contributing factor to a potential recession, as it makes borrowing more expensive, complicates consumption and at the same time inflation and stop the economic dynamics.
“This is a the driving needed from the Economic situation of the country, but that the current situation could mean a reduction in the dynamics of demand and therefore of production,” he adds.
The expert ensures that the different problematic that cause the current situation, such as inflation, may start to decline before the end of this year or next year, impeding the recovery of purchasing power and the normalization of monetary policy.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
