Merry is its way to come and misery is to leave sooner, rather than later. Waves of jubilance seem to hit the populace as the drawback of the cruel local businessmen was addressed by President Silanyo’s government – this is will be memorable and it will be noted in the history – but too late. It would better be done earlier. Nonetheless, the proper legal measure has come with an alluring result – citizens throughout the country see an enticing achievement for their currency getting extravagant and foreign money slumping down readily.
Of course, it is an outstanding step taken forward – the hot slap struck to the ridiculous businessmen who, I believe, ruthlessly scrammed the patriotism, and caused plunder and plague; they forgot to respect towards their destitute people – this is their turn – one good turn deserves another – feel the hardships and feel the pain as them. Opportunity knocks the door once, not twice – the country faced grim economic situations in several times. The head of state told the local businessmen to tackling the task painstakingly.
No further proceedings were taken as a result of this panic sudden nose dive of US dollars. Since it is the duty of the President, I am delighted to see him playing his role – citizens are too hilarious for your action, Mr President – their congratulation is continually occurring – and the destitute people are more serious than us. They are invoking God for long life span. Looking the situation thoroughly, could the inflation be reduced easily? If yes, how?
In contrast to that traditional view, some economists have argued that inflation can be reduced with minimal short-term costs if policymakers are able to change the public’s expectations about inflation. If policymakers credibly commit to reducing inflation, the public will believe them and inflation will fall without a dramatic slowing of the economy. Post-World War I Europe offers case studies of countries that abruptly halted enormous inflation rates at virtually no cost to output because government policies firmly set expectations. Other studies have shown that a number of emerging economies even experienced economic booms while trying to squelch high inflation. So, which perspective is correct?
According to Henry, an associate professor of economics, neither view asks the most important question: Do the long-term benefits of reducing inflation outweigh the short-term costs? Economists have been so focused on measuring the costs that they have not asked whether the gain that results from lower inflation justifies the pain required to reduce it. Henry uses the stock market to gauge the net effects. In a well-functioning and rational stock market, he points out, changes in stock prices reflect revised expectations about both future corporate profits and interest rates. Measures taken to stabilize inflation may raise interest rates, although interest is prohibited in Islam, and reduce profits in the short run-which is bad for the stock market. However, the reduction in inflation may increase future profits and reduce interest rates – which is not practised in Somaliland – a Muslim nation. Therefore, the stock market response to the announcement of a policy directed at reducing inflation measures whether the good effects of reducing inflation outweigh the bad.
By Guled Dalha
Editor-in-chief of the independent newspaper