I was in Indonesia when they had crisis in 1998, currency lost around 80% value, and then the government raised interest rates to around 70 percent, and it worked
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I was in Indonesia when they had crisis in 1998, currency lost around 80% value, and then the government raised interest rates to around 70 percent, and it worked
The situation here could be solved by devaluation, the thing is that our country is not producing anything (but oil), we are importing all food and medicine, all the income by selling oil is spent there, also the price of oil is low and we produce less every month, corruption and bureaucracy is destroying our oil company. And government keep increasing salary so inflation is going crazy, our currency will keep going lower, there is no way to stop it, at least not with this government...
70%?? That doesn't sound like it worked but I'm not an economist. :(
It stopped the currency from going lower, finally stabilized although at a much lower level than before crisis. So it can work depending on situation