ID :
35069
Thu, 12/11/2008 - 14:35
Auther :
Shortlink :
https://www.oananews.org//node/35069
The shortlink copeid
Mechanisms of overcoming financial crisis
Almaty, 11 December 2008, (Khabar) - Local economists offered their own version of overcoming the crisis. At the national business-forum in Almaty they announced some of their ideas. Specialists have already called the recommendation on increasing money supply for financing infrastructural projects both ambiguous and pretentious. However, the developers themselves are sure that additional issued tenge will only stimulate the economy and will not cause inflation.
Olzhas Khudaibergenov, macroeconomic researches group leader:
- In Japan, money supply to GDP totals 200%, but inflation can sometimes be desirable as there is deflation there in general. In Great Britain it stands at 140%, in the European Unionat 90%, in China 250%, in the USA 80% and the inflation rate is lower in all these countries compared to us. Whereas our money supply concerning GDP lies at 16%, thus an inflation free reserve increase to the level of 80% is huge.
The developers of the new model are also sure that the quantity of tenge may be increased 5 times and it still won’t prove to be catastrophic. One more condition is maintaining the volume of cash money at 5%. According to them, the local economy is being underfinanced at present, and in the context of price-cutting for energy resources and closing of the world markets of capital, this step could play the role of a multiplier. Foreign economists agree with local experts on this issue.
Mikhail Khazin, expert-economist (Russia):
- It’s a break-through on world-scale terms, for the first time, alternative methods for the development of the economy and the formation of new mechanisms and tools for development are being carried out with the support of the state, which approaches its policy in a thorough manner as well as defining its place in the world and the economy. It’s well worth being proud of it. Neither in the Russian Federation, nor in Europe or the USA, has this level of comprehension of the situation at hand been reached.
According to specialists, this step offered will also stimulate demand which is falling at the moment. Apart from that, new workplaces will appear as well. However, according to the head of the “Samruk Kazyna” Fund, an increase of money supply can lead to a devaluation of tenge and an exhaustion of the economy. Kairat Kelimbetov strongly believes that the volume of the national currency should be increased corresponding to the rate of economic growth.
Kayrat Kelimbetov, general manager of “Samruk Kazyna” National Welfare Fund:
- If we issue and distribute money to everybody, this bottle of mineral water, for example, will be more expensive, the other bottle won’t come from nowhere, as there is a potential for the government to avoid this. I don’t consider trading of the oil sector; it should be connected with real estate, infrastructure and so on and this happens due to a time lag. For this reason, I think the idea itself is correct but not the mechanisms or conclusions that have been made from it. The idea of creating counseling and an arena for deliberation was also proposed. The professional economists and financiers would have an opportunity of developing recommendations on solving certain economic problems and offering effective ways of their overcoming.
Olzhas Khudaibergenov, macroeconomic researches group leader:
- In Japan, money supply to GDP totals 200%, but inflation can sometimes be desirable as there is deflation there in general. In Great Britain it stands at 140%, in the European Unionat 90%, in China 250%, in the USA 80% and the inflation rate is lower in all these countries compared to us. Whereas our money supply concerning GDP lies at 16%, thus an inflation free reserve increase to the level of 80% is huge.
The developers of the new model are also sure that the quantity of tenge may be increased 5 times and it still won’t prove to be catastrophic. One more condition is maintaining the volume of cash money at 5%. According to them, the local economy is being underfinanced at present, and in the context of price-cutting for energy resources and closing of the world markets of capital, this step could play the role of a multiplier. Foreign economists agree with local experts on this issue.
Mikhail Khazin, expert-economist (Russia):
- It’s a break-through on world-scale terms, for the first time, alternative methods for the development of the economy and the formation of new mechanisms and tools for development are being carried out with the support of the state, which approaches its policy in a thorough manner as well as defining its place in the world and the economy. It’s well worth being proud of it. Neither in the Russian Federation, nor in Europe or the USA, has this level of comprehension of the situation at hand been reached.
According to specialists, this step offered will also stimulate demand which is falling at the moment. Apart from that, new workplaces will appear as well. However, according to the head of the “Samruk Kazyna” Fund, an increase of money supply can lead to a devaluation of tenge and an exhaustion of the economy. Kairat Kelimbetov strongly believes that the volume of the national currency should be increased corresponding to the rate of economic growth.
Kayrat Kelimbetov, general manager of “Samruk Kazyna” National Welfare Fund:
- If we issue and distribute money to everybody, this bottle of mineral water, for example, will be more expensive, the other bottle won’t come from nowhere, as there is a potential for the government to avoid this. I don’t consider trading of the oil sector; it should be connected with real estate, infrastructure and so on and this happens due to a time lag. For this reason, I think the idea itself is correct but not the mechanisms or conclusions that have been made from it. The idea of creating counseling and an arena for deliberation was also proposed. The professional economists and financiers would have an opportunity of developing recommendations on solving certain economic problems and offering effective ways of their overcoming.
