Price increases are inexorable," says Dr. Artur Bartoszewicz

Another economist warns: price increases are inexorable. In an interview with PAP, Dr Artur Bartoszewicz of the Warsaw School of Economics said that governments on [...] https://www.pinterest.com/pin/1085437947660215829/

Another economist warns: price increases are inexorable. In an interview with PAP Dr Artur Bartoszewicz from Warsaw School of Economics said that governments all over the world are flooding the markets with cash because they believe that this way they will stop the crisis. Price growth is certain Dr. Artur Bartoszewicz of the Warsaw School of Economics says that today, government reports are slightly powdering the reality: "The fact is that positive data are more attractive and more often commented on. Information about inflation is overlooked and even often downplayed, as it carries a negative message about the state of the economy and confirms the scale of costs that society bears during the crisis. Especially the poorest part of the population." As he adds, "price increases are inexorable, especially with rising wages, with labor productivity rising disproportionately. Now governments around the world are flooding the markets with cash to fill the huge hole created by the sudden and unexpected halt in economic activity." "The effects of this include that we are sustaining a slew of zombie companies and zombie jobs that under normal market play would have disappeared long ago, but in the current situation are sustained by a public drip." - he explains. In his opinion, in a few months the prices of energy as well as food, which is something an average citizen cannot deny himself in everyday life, may increase. Is NBP an instrument of power? The NBP also came up in the conversation. Our central bank should fight inflation. "There is a question about the full independence of the central bank. The NBP has become one of the tools of the government's fight against pandemonium, which has - or may have - considerable consequences. The central bank should first and foremost ensure that the price and services index does not break through the inflation target, and that is where the NBP's attention should be focused. However, the Bank's role is shifting more and more towards that of a monetary policy instrument rather than a monetary policy maker. The NBP's profit has become an important item in the central budget, and participation in various stimulus programs seems more important than taking care of the currency and the stability of the financial system. I understand that the stakes are high, the authorities are fighting to stay on the growth path or to quickly get back on it. However, this should not affect the fundamental roles of key state institutions, as this may raise questions about the credibility and independence of their actions, including the central bank," the expert warns. - warns the expert. Tags prices inflation NBP