cover image: SPOTLIGHT - CAN MACROECONOMIC POLICIES - ADDRESS THE CURRENT INFLATION SITUATION IN PAPUA

SPOTLIGHT - CAN MACROECONOMIC POLICIES - ADDRESS THE CURRENT INFLATION SITUATION IN PAPUA

27 Aug 2024

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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Pages
4
Published in
Papua New Guinea

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