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Spotlight: Econ Op-eds in Summary (Week ended 17th February '21)



1. Inflationary pressures on the horizon

By: Prof. Sirimevan Colombage

  • Given the fast growth in money supply, rupee depreciation, world fuel price hikes and supply shortages in the backdrop of the pandemic, there are signs of high inflation in the coming months.

  • As such, while it is imperative to adopt expansionary fiscal and monetary policies during this crisis period as practiced in many other countries, the government should take precautionary measures to counter the impending inflationary tensions.

  • While measures like the recently introduced price controls might be useful in a limited manner to ease inflationary tensions during the pandemic, concrete economic strategies aimed at disarrayed macroeconomic fundamentals are essential to deal with the root causes of inflationary pressures.

For the full article – Refer the Daily FT

(Compiled by: Promodhya Abeysekara)

Disclaimer: This information has been compiled from sources believed to be reliable but Frontier Research Private Limited does not warrant its completeness or accuracy. The bullet points provided for each summarised opinion article is written by Frontier Research and has no connection to the respective author. Furthermore, the information contained in these reports/emails are confidential and should not be shared publicly. Disclosure, copying and distribution is strictly prohibited.

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