Edward Cowan, former Washington economics editor for The New York Times

Edward Cowan, former Washington economics editor for The New York Times, writes the UBN of Zelenskiy’s call for an 11% devaluation of the hryvnia and the Liga.net interview with IMF representative Goesta Ljungman: “This is classic inflationism – depreciate your way to faster growth. Another label is Beggar My Neighbor. The Swede speaks truth, as you note — textbook, mainstream economics. Here is the eventual problem: inflation ineluctably leads to higher interest rates, because lenders are no dumber than borrowers. High interest rates inhibit economic activity. If the central bank gets its act together, it reverts to monetary restraint. There is no good substitute for moderate monetary policy and moderate, sustainable growth.”