Republicans: The Government must stop inflation using economic measures and not administrative levers

The People's Republican Party (PPR) accuses the Communist government of taking the wrong approach in curbing inflation in Moldova. The strategy of involving the National Bank of Moldova (NBM) in stopping inflation is inappropriate, because it is an administrative lever and not an effective economic measure, the party said in a statement quoted by Info-Prim Neo. According to the PPR, the involvement of the central bank in the process of stopping inflation is another mistake of the Government, which will impact heavily on the national economy, reduce lending, and as a result, the possibility for people to start or expand a business, and spoil the investment climate in the country. “We regret the fact that the Government was unable to anticipate the price hikes, despite evident clues, both external and internal, that indicated such an outcome. The Government chose instead to enjoy the benefits resulting from the constantly growing remittances, without thinking of long-term sustainable economic growth strategies”, the statement reads. As the PPR believes, the chain reaction of rising food prices cannot the stopped through Government ordinances, but rather through determined economic balancing measures. The PPR thinks that donors must have a strong say in this situation: “The foreign donors posses actual faculties and levers to influence the Government's policies. Thus, the PPR urges international organizations, in particular the IMF, to help the Government change its approach to the existing situation”.