April 6, 2008
Longterm goals aside, I’m kind getting used to inflation. Since money won’t be half its worth in five years, I’ve made it a habit to spend lavishly. I bought two ridiculously expensive computers within the last four months, had dinner at No 18 twice and helped out two pretty damsels in dire need of an extra buck.
But even for a spoilt brat like me, the current rate of inflation is kind of scary. I don’t intend to live forever, but I do intend to have a future. That’s kind of why I blogged about Dr. Harsha De Silva’s hopeful solution to inflation some time back.
This week on the Sunday Times, Economist Anil Perera from Central Bank has written a reply. While it’s good to see that the Central Bank pays attention to other perspectives, it’s not so much heartening to see that the Central Bank spokesman doesn’t know how to disagree.
There’s also an piece on inflation today by Dr. Sirimal Abeyratne from the Colombo University, in which he states
“The government has been running an excessive budget deficit with increased spending during the past few years for various reasons, including the expansion of the size of the government. But I am quite sure that this has been so not because our policy makers firmly believe in Keynesian economic policy.”
I’m quite sure too Dr. Abeyratne. What I’m not quite sure is where this will end.
If the Great Depression led to World War II, where will the Great Sri Lankan depression end? Last time I checked, we were already in a war.