When things go in the direction of inflation, it means that…
A weak bank is killed with a newspaper because the stronger ones simply buy the media. This is what the chairman of the Bulgarian Forum of Business Leaders, Levon Hampartzumyan, said about the program “Bulgaria, Europe and the world in focus” on Radio “Focus”. Panic and panic reactions are the factors against which there is no protection, he was categorical.
Everything else has a way to be solved – capital is put in, someone buys the bank, it depends on how things are arranged, but against panic – there is no protection, Hampartzumyan explained.
“When things go in the direction of inflation, which we already want to be around 2%, it means that there is too much money on the market. How do we collect it? We cannot take it by decree, we have to raise the interest rates so that they themselves go back to where they came in. For that money to come back and no longer push inflation – that is, for it to go back, the supply of goods, services and the money supply available in the economy must be balanced.
This is one of the tools through which the central banks (ECB and FED) get their money back,” explained the expert.
“Europe, when it gets back on its feet, can be rational and successful. The quality of life in Europe is the highest in the world,” added Levon Hampartzumyan.
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