Options to address rising inflation
The SBP (State Bank of Pakistan) is trying to check inflation through just one instrument, the interest rate, based on the theological belief that the issue is demand, ignoring other,…
Theoretical dilemma: elite capture, inflation
With the recent increase in food inflation and taxes it is essential that we reexamine the discussions regarding inflation and economic policies. While external factors like the Covid-19 pandemic and…
Policy rate and inflation
In the 1970s, economists believed that inflation was primarily caused by ‘monetarism’, which is too much money chasing too few goods. They contended that the only way to control inflation…
Governance failure and inflation
The famed American artist, The Notorious B.I.G, exclaimed that "the more money we come across, the more problems we see".This also resonates with how the government has been managing the…
After extraordinary rally, bonds’ fate now with bank stability and inflation
Borrowing costs in some of the world’s biggest economies end a volatile quarter eyeing their sharpest drops in years and more swings are likely until it is clear whether central…
SDR allocation, monetary tightening, inflation, and banking crisis
While the International Monetary Fund (IMF) continues to not provide a much-needed special drawing rights (SDRs) allocation, and instead pushes countries, including Pakistan, under its programmes to adopt austerity and…
Taxation and inflation
The Federal Board of Revenue (FBR) has claimed collection of net revenue of Rs4,493 billion in the first eight months of the current financial year against Rs3,820 billion collected in…
Politics of inflation
Inflation in Pakistan is a political decision. The most recent government-released figures depict a major year-on-year increase of 31 per cent. The 31 per cent increase in prices is a…
Investors revive inflation trades as 6pc Fed rate risk grips Wall Street
Spooked by a flurry of hotter-than-expected US economic and inflation data last month, investors are reviving trading strategies that bet on a higher peak in interest rates. The recalibration in…
Galloping inflation
Pakistan is seeing today an unprecedented hike in the rate of inflation. The CPI has risen on a year-to-year basis in the month of February 2023 by as much as…
