This comment by the guest: 'baaz log jo ap ki trah sahibay hesiat b hotay h' and the response by the host 'Allah karay aisa he ho' was so spontaneous!! Loved it:)
I think, MPC Committee should also add the population growth rate in model of evaluation before rasing rate due to inflation, adjust that population growth rate into formula, and encourage supply side.
Raising rates is not the only solution to cater inflation, In case if the rate hikes impact on inflation is expected in 12-18 Months. As sir said our most of inflation is because fiscal deficit. So Govt should focus on fiscal policy. The rise in demand can also be due to population, So in this we should must focused on supply side and encourage business for more production, Raising rates will encourage businesses to preserve their money into banks for healthy returns instead of invest that money in business expanding.
For fiscal policy, there is very high inside lag meaning that initiating a policy against inflation or current account deficit require too much time. The main hurdle is non-agreement and poor problem identification by our policy makers. Although a contractionary fiscal policy is indeed a better policy tool to control inflation yet government prefer central bank to do something quick and make it seem we are doing something against the problem. Hence due to very low inside lag, monetary policy is given more importance rather than fiscal policy
@SBP I have a question. That when you increase interest rate to decrease demand and to control inflation then it is slowing down the economy. All Business will be reduced and money flow will stop so it is increasing poverty. So why are you stopping economic growth?. Instead if interest rate is decreased then demand will increase and due to demand production will increase so overall economy will increase and money flow will increase. Kindly clear these things
Good discussion and explanations for SBP's action in layman's language. But I am confused and wondering that how government's market borrowing from banks is inflationary? In my opinon, such borrowing is alrady from the liquidity pool available in the system. Isn't? can someone explains it.
I think it's because government spending more also increases the consumption or the demand which in turn increases the inflation because the supply is limited to cater to it
When there are supply side disrùptions, it means the cost of production is increasing. And when cost of production is increasing there can be lay offs. So how there will be an increase in wages? Why would worker demand for higher wages? People would be willing to work on even lower wages as economy is facing lay offs. Can someone clearify?
If petrol prices have increased and public wants an increase in their income and wages isn't it justifiable that they are in need that's why they are asking for it bcz how are they gonna adjust that increase their wages and salaries the cost of living would increase which would badly affect other factors like their education place of residence etc so anyone here that can help me with this thing?
This concept is justifiable to increase the level of wages/income to at least support people against rising inflation. Higher prices would mean more money needed but the thing we need to see is that we are a consumption-driven economy. The rise in wages are not followed by rise in living standards especially in Pakistan. When income rises, we might be able to afford high-cost petrol thats it. We are willing to spend that income for non-essentials that contribute noting to the standard of living. But it will increase the short term satisfaction that we can afford it. But standard of living is not improved in that way, it deteriorated when prices rose and came back to original place when wages rose. We kept this thought in mind that rise in wages will improve our living, NO !!!! its actually the way you use that incremental income will determine how much you can improve the way you are living.
@musabimran8142 When there are supply side disruptions it means the cost of production is rising. The rising cost of production causes firms to lay off workers. So why would be there an increase in wages? Why would worker demand higher wages when they are being laid off? So how would increasing interest rate is a good policy to mitigate the impact of supply side disruptions?
Adeel Azhar Sahib, Murtaza Sahib: great initiative. These informative videos clarified actual sitations.
This comment by the guest: 'baaz log jo ap ki trah sahibay hesiat b hotay h' and the response by the host 'Allah karay aisa he ho' was so spontaneous!! Loved it:)
SBP podcast is great initiative by SBP
Commendable 👍👍
Great explanation. Everything was explained so well and without the buzzwords and gibberish. Well done SBP. Well done.
Great initiative for general public. To make it more effective; guest profile must be shared i.e. education, past experience, etc.
One of the best things SBP is doing for us.
The guest explained everything very nicely with great examples. Keep up the good work!
Good initiative from SBP for public awareness. And best selection of host Adeel Azhar!
Four main sources of inflation 1) Large fiscal deficit 2) Demand pull inflation 3) Supply side shocks 4) Expectation on bad forecasting
Covered a lot of important topics in plain, easy to understand language and with good use of everyday examples! Keep up the good work!
Dr. Omer Farooq : thanks for such great explanation.
Thoroughly explained! Well done.
Agreed
Meaningful Work, Appreciated...
Also, the podcast was rich in concepts. Thanks.
@Adeel_Azhar you are doing great job. thanks for your valuable content.
I think, MPC Committee should also add the population growth rate in model of evaluation before rasing rate due to inflation, adjust that population growth rate into formula, and encourage supply side.
Nicely explained thanks
Great initiative
Why you stop posting such podcasts. We want more? These podcasts help a lot to understand economy of Pakistan. Please upload more podcasts
Great SBP 👍👍👍
Raising rates is not the only solution to cater inflation, In case if the rate hikes impact on inflation is expected in 12-18 Months.
As sir said our most of inflation is because fiscal deficit. So Govt should focus on fiscal policy.
The rise in demand can also be due to population, So in this we should must focused on supply side and encourage business for more production, Raising rates will encourage businesses to preserve their money into banks for healthy returns instead of invest that money in business expanding.
For fiscal policy, there is very high inside lag meaning that initiating a policy against inflation or current account deficit require too much time. The main hurdle is non-agreement and poor problem identification by our policy makers. Although a contractionary fiscal policy is indeed a better policy tool to control inflation yet government prefer central bank to do something quick and make it seem we are doing something against the problem. Hence due to very low inside lag, monetary policy is given more importance rather than fiscal policy
Well explained but please take practical measures to alleviate the poverty, even the salaried ppl have been greatly affected
Very well Explained 👍
Good initiative!!!!
@SBP I have a question. That when you increase interest rate to decrease demand and to control inflation then it is slowing down the economy. All Business will be reduced and money flow will stop so it is increasing poverty. So why
are you stopping economic growth?. Instead if interest rate is decreased then demand will increase and due to demand production will increase so overall economy will increase and money flow will increase.
Kindly clear these things
What about undocumented economy, will it allow the target of policy rate to slowdown economy ?
Love it ❤️❤️❤️
The guest, Masha'Allah 👍
Interest rate is the only cause of failure of economic system of the world
Well explained
Sbp❤️
Good job but he didn't really answer the last question
Kindly provide subtitles for this podcast
Good discussion and explanations for SBP's action in layman's language. But I am confused and wondering that how government's market borrowing from banks is inflationary? In my opinon, such borrowing is alrady from the liquidity pool available in the system. Isn't? can someone explains it.
I think it's because government spending more also increases the consumption or the demand which in turn increases the inflation because the supply is limited to cater to it
Please add English subtitles.
SBP. Banker Azam. SBP. Syed Murtaza. SBP. Raza Baqir. Nauman Hous light night timing of no day timing of credit SBP an share do!
سود حرام ہے
جو کوئی اللہ کے ذکر سے منہ موڑے گا، اس کی معیشت تنگ ہوجاتی ہے
Amazing
If we didn't sort the fiscal side issue then this rate hikes scheme will remain continue and gonna add hurdle in economic growth.
❤
👍
When there are supply side disrùptions, it means the cost of production is increasing. And when cost of production is increasing there can be lay offs. So how there will be an increase in wages? Why would worker demand for higher wages? People would be willing to work on even lower wages as economy is facing lay offs. Can someone clearify?
That is week not a powerful tool
Foolish people there to see things but they have forget to die .
bad numa Sir soud ka hai jo inshaAllah cut kar rahay ga
These all are for rich people not and can not represent the poor people .
If petrol prices have increased and public wants an increase in their income and wages isn't it justifiable that they are in need that's why they are asking for it bcz how are they gonna adjust that increase their wages and salaries the cost of living would increase which would badly affect other factors like their education place of residence etc so anyone here that can help me with this thing?
This concept is justifiable to increase the level of wages/income to at least support people against rising inflation. Higher prices would mean more money needed but the thing we need to see is that we are a consumption-driven economy. The rise in wages are not followed by rise in living standards especially in Pakistan. When income rises, we might be able to afford high-cost petrol thats it. We are willing to spend that income for non-essentials that contribute noting to the standard of living. But it will increase the short term satisfaction that we can afford it. But standard of living is not improved in that way, it deteriorated when prices rose and came back to original place when wages rose. We kept this thought in mind that rise in wages will improve our living, NO !!!! its actually the way you use that incremental income will determine how much you can improve the way you are living.
@musabimran8142
When there are supply side disruptions it means the cost of production is rising. The rising cost of production causes firms to lay off workers. So why would be there an increase in wages? Why would worker demand higher wages when they are being laid off? So how would increasing interest rate is a good policy to mitigate the impact of supply side disruptions?
rate kam.kab ho5y ha poori conversation ma berh hi rahy thy rates
Neelam Shahzadi M imtiaz
Just need ISLAMIC system
😄😄💕
It's totally tamasha show secondly it's not a state bank it's a ..........child of federal reserve bank of America.
Not useful
abay joker anchor tm khamosh raho tmhy economics ka e ka bi ni pata. h
kaisa joker anchor ha
Pakistanio sood haram hai