Ravi Menon: Taming inflation is like trying to slow down a speeding car on a gentle slope. It takes a combination of forcefulness & calibration.

[kollective]

Taming inflation is like trying to slow down a speeding car on a gentle slope. It takes a combination of forcefulness and calibration.

If you do not depress the brakes early enough or hard enough, you cannot break the speed momentum – likewise, monetary policy needs to act early and decisively.

But if you jam the brakes too hard, the car may skid or even topple over – the economy may go into a recession.

So you have to pump the brakes progressively, to gradually slow down the car to a more sustainable cruising speed. This is why central banks all over the world tighten monetary policy in a series of well calibrated steps and closely monitor the impact of their actions before deciding on the next step.

And that is exactly what MAS too is doing.

Which is why we are not going to say anything about what we might or might not do in October!

https://www.mas.gov.sg/news/speeche...rt-2021-2022-media-conference-on-19-july-2022

 

[laksaboy]

Central banks ARE the problem, and the source of the problem cannot also be its solution.

Wake the fuck up.

 

[bobby]

WTF...lose $7b and can talk cock some more.

 

[kollective]

Lets go paragraph by paragraph:

will cover four themes on inflation, both globally and in Singapore.

• Inflation is being driven by both supply and demand factors
• Taming inflation will mean a slowdown in economic growth
• A multi-pronged approach to deal with inflation
• Managing debt amid inflation and rising interest rates

 

[kollective]

Lets go paragraph by paragraph:

will cover four themes on inflation, both globally and in Singapore.

• Inflation is being driven by both supply and demand factors
• Taming inflation will mean a slowdown in economic growth
• A multi-pronged approach to deal with inflation
• Managing debt amid inflation and rising interest rates

Inflation is a monetary phenomenon, but he choose to blame it on external factors, therefore we will be same behind the curve on tightenting

Slowdown is understatement

Multi prong is just description

Managing debt - this is good habit but what caused the debt? Easy money policies

 

[kollective]

The key source of inflation pressures now in most advanced economies is labour market tightness.

• There has been a marked increase in the demand for labour, against a decline in labour force participation that occurred during the pandemic and has not recovered fully.
• Wage increases have exceeded productivity gains, fuelling price pressures.

"Why u all never work during covid?"

"Why u all wan higher salary?"

 

[kollective]

TAMING INFLATION MEANS SLOWER ECONOMIC GROWTH

The outlook for a gentle easing of inflationary pressures globally is also premised on strong monetary policy actions by central banks.

• Monetary policy dampens inflation by reducing aggregate demand to be in line with aggregate supply.
• In most countries, this is achieved through higher interest rates that dampen consumption and investment demand.
• A slowdown in economic growth is necessary to restore macroeconomic stability and balance.

Alvin Tan say no recession in 2023

https://www.google.com/amp/s/www.bu...-expected-for-singapore-in-2023-alvin-tan?amp

 

[kollective]

MAS has been proactive in tightening monetary policy in response to rising inflationary pressures, tightening policy four times in the last nine months.

Interest rates in Singapore have risen, alongside the pick-up in US interest rates.

• The increase in domestic interbank interest rates has in turn led to a rise in lending and mortgage rates in Singapore.
• Domestic interest rates are expected to rise further as global central banks continue to raise rates, adding to the debt servicing burdens of corporates and households

Thats all they can do. Raise rates.

Always the same

Talk a lot, but only can change the interest rate

 

[kollective]

MAS’ FINANCIAL RESULTS

Let me now provide an update on MAS’ financial results.

MAS recorded an overall loss of S$7.4 billion for FY 2021/22.

• This has reflected lower investment gains, a large negative foreign exchange translation effect, and higher interest expenses.

Investment gains on the Official Foreign Reserves were S$4.0 billion.

$7.4 billion

this amount give to sinkies

each person how much? 2k?

 

[batman1]

Indians are good tongue-twister.

 

[red amoeba]

The only thing speeding is his salary.

 

[laksaboy]

This is how other countries respond to inflation. Countries with their testicles still intact.

 

[congo9]

Ravi menon knows his job well. At least better then our minister of states for finance.

 

[Loofydralb]

When you don't know how to tame an inflation, you give plenty of excuses and absurd anecdotes.
Just say you can't do it and let somebody else who can, do it.

 

[kollective]

This is how other countries respond to inflation. Countries with their testicles still intact.

You follow wall street silver also? Lol

 

[kollective]

Ravi menon knows his job well. At least better then our minister of states for finance.

We are already experiencing high inflation

He knows his job well?

We are suffer ring

 

[syed putra]

Its a western gomen created inflation
US can pump out more oil and gas but refused to do so.
Russia and Ukraine can export more oil and gas, wheat, sunflower oil, minerals but prevented from doing so.