In 1995, following the implies that inflation reduces the purchasing power or value of floating of the Kina, inflation reached an all-time high of 17.3 the Kina. [...] These issues forced the government, through the Central Bank, Source: Quarterly Economic Bulletin, BPNG to float the Kina in 1994, in which the domestic exchange rate The end of high commodity prices and resources boom had was determined by the market forces with limited intervention. [...] The continuous depreciation of the Kina rate adjustments through the IMF program to pursue Kina against the currencies of major trading partners in recent convertibility. [...] The main objective of monetary policy is to maintain price stability The inflation pressure in the country since 2020 has been through the adjustment of the policy rate, known as the caused mainly by high taxes on imports, inflation in the Kina Facility Rate. [...] PNG is currently experiencing imported inflation pegging the Kina to a basket of currencies, but it is currently caused by the coronavirus outbreak, the war in Ukraine and tied to the IMF loan condition.
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Table of Contents
- Inflation is a general increase in the price of goods and services in 1
- Papua New Guinea is currently experiencing imported inflation 1
- Monetary and exchange rate policy instruments cannot effectively 1
- Some fiscal policy options that the government may consider in 1
- CAN MACROECONOMIC POLICIES ADDRESS THE CURRENT INFLATION SITUATION IN PAPUA NEW GUINEA 1
- Thomas Wangi 1
- Volume 17 Issue 15 1
- Review of domestic inflation trend since 1975 2
- August 2024 2
- CAN MACROECONOMIC POLICIES ADDRESS THE CURRENT INFLATION SITUATION IN PAPUA NEW GUINEA 2
- Sources of current inflation 3
- Existing macroeconomic policies 3
- Policy options to address inflation 3