Game Over For Belarusian National Bank

• 25.04.2022, 12:40

Good Lord, the monetary targeting games are over.

It looks like the Belarusian National Bank has lost its battle for price stability. He's been holding on for so long, to be honest. But on Friday, one said that the main thing is the economy and not all this nonsense like the exchange rate and inflation. No one needs “rates, inflation, deflation” without the economy, writes the “Letters to Daughter” Telegram channel.

Simply put, this means actually a very simple thing. Good Lord, this means that the monetary targeting games are over. That the economy needs more currency, good and different. Or, if there are some problems with good and different currencies, then at least cheap ones.

This is because the government has big plans for how it will distribute money in the name of stability and import substitution. Prime Minister Halouchanka has personally promised to give loans to those in need. And where will he get them except the National Bank? There are not enough funds in the budget to substitute all imports. And the National Bank has enough. And if suddenly it’s not enough, then he will draw them for himself. And if price or exchange rate stability deteriorates because of this, then it’s their loss. It is your problem that you are used to the good life.

Oh, inflation in annual terms amounted to 16 percent instead of the projected six in March. And as I understand it, the Belarusian authorities decided that now they have nothing to lose anyway. It is in Europe devastated by anti-Belarusian sanctions that inflation is breaking five percent records. And the Belarusian inflation still has to rise and rise to its personal record of 2011.

So the government is going to revise the inflation plan for this year. But Deputy Prime Minister Snapkou said on Friday that Muggles don't need to know about these new plans. Apparently, the plans are so superb that they can down mentally unprepared ones. In general, as the union's practice shows, it is very convenient to keep your plans secret. Then it doesn't matter if you lost your tanks near Kyiv or the price stability on the way to prosperity. You can always say that it was planned that way.

I believe that the Belarusian authorities should not stop halfway in ensuring this new price stability, but they should make another big step forward. They need to outlaw inflation. What inflation are you talking about? Inflation is a corrupt chimera of bourgeois monetarism. You shouldn't apply such indecent terms to an economical economy.