Part 4/8:

Despite warnings from the International Monetary Fund (IMF), the government of Seram took few proactive measures to adjust its economic policies or prepare for an economic downturn. This negligence rendered the country exceptionally vulnerable when commodity prices began to tumble around mid-2014.

As a result, the government found itself unable to sustain its finances, leading to a complete economic collapse in a relatively short span of two years. The scenario worsened as the country's debt tripled, and inflation skyrocketed from 3.4% to an alarming 60%. The government's choice to raise interest rates resulted only in exacerbating the currency's depreciation, further compounding the crisis.