finance minister has been claiming to appreciate S$ to curb inflation,
but only to certain extent. if things are getting worse in the coming quarters, i think the govenment may try other metheds:
1. subsidies: doing now in a way of govenment bonus;
2. artificial interventions like price controls, will not likely to happen;
3. rates adjustment: may happen if things gets worse, but the impairment with Fed rates may create more long term troubles.
4. do nothing: since the recession fear is growing, just let market adjust itself. but this is slow and perhaps dangerous.
summary:
whatever we do, curbing inflation comes with some other tradeoffs. most of them are trading long term interest for short term relief. 现在我觉得政府是“以不变应万变”+ moderate intervention!
personal view that inflation will still go on! this is simply the nature of economy.
but only to certain extent. if things are getting worse in the coming quarters, i think the govenment may try other metheds:
1. subsidies: doing now in a way of govenment bonus;
2. artificial interventions like price controls, will not likely to happen;
3. rates adjustment: may happen if things gets worse, but the impairment with Fed rates may create more long term troubles.
4. do nothing: since the recession fear is growing, just let market adjust itself. but this is slow and perhaps dangerous.
summary:
whatever we do, curbing inflation comes with some other tradeoffs. most of them are trading long term interest for short term relief. 现在我觉得政府是“以不变应万变”+ moderate intervention!
personal view that inflation will still go on! this is simply the nature of economy.
