Expert suggests the government set up food reserve fund as safeguard against rising food prices
25.02.2011,
21:12
Amanagement expert suggested today that the Armenian government set up a food reserve fund as a safeguard against rising food prices saying it must have as mush of staples as to meet the country’s 12 month needs.
YEREVAN, February 25. /ARKA/. A management expert suggested today that the Armenian government set up a food reserve fund as a safeguard against rising food prices saying it must have as mush of staples as to meet the country’s 12 month needs.
Speaking at a news conference Harutyun Mesrobian said government-run food reserves are the most powerful mechanism to curb inflation rise at local food markets and every self-respecting nation must have it. He said the government should move quickly to apply price regulation mechanisms , set up a food reserve fund and eliminate monopolies as quick as possible.
He argued it was primarily wrong to burden inflation fighting duty on the Central Bank because it wields only one tool to curb it – decrease of money supply and preserving the exchange rate of the national currency, but these measures are strangling domestic production.
Harutyun Mesrobian challenged the authorities’ assurances that the crisis was over. ‘The first evidence that it goes on is the ongoing rise of gold price that has upped 30% over the past year. People have stopped trusting banknotes preferring to invest in gold that has always been a most safe investment,’ he said.
He further blamed the government for the failure to manage the inflation predicting it will be higher this year than the 9.4% in 2010.
Aharon Adibekian, head of Sociometer polling center, said the reasons behind the inflation are not Armenia’s blockade by two of its neighbors, neither lack of resources or global prices. The main reason, he said, is the wrong distribution of resources and wrong administration. -0-
Speaking at a news conference Harutyun Mesrobian said government-run food reserves are the most powerful mechanism to curb inflation rise at local food markets and every self-respecting nation must have it. He said the government should move quickly to apply price regulation mechanisms , set up a food reserve fund and eliminate monopolies as quick as possible.
He argued it was primarily wrong to burden inflation fighting duty on the Central Bank because it wields only one tool to curb it – decrease of money supply and preserving the exchange rate of the national currency, but these measures are strangling domestic production.
Harutyun Mesrobian challenged the authorities’ assurances that the crisis was over. ‘The first evidence that it goes on is the ongoing rise of gold price that has upped 30% over the past year. People have stopped trusting banknotes preferring to invest in gold that has always been a most safe investment,’ he said.
He further blamed the government for the failure to manage the inflation predicting it will be higher this year than the 9.4% in 2010.
Aharon Adibekian, head of Sociometer polling center, said the reasons behind the inflation are not Armenia’s blockade by two of its neighbors, neither lack of resources or global prices. The main reason, he said, is the wrong distribution of resources and wrong administration. -0-
