Miodrag Zec: Inflation is a disease produced by politicians

Inflation is a disease produced by those who control the issue of money, namely politicians, said economics professor Miodrag Zec.

He added that inflation in Serbia would not be higher than in the USA or the EU if someone had not wasted a lot of money.

Explaining the occurrence of inflation, Zec said that all the governments of the world like to spend and have someone else pay for it.  

He added that someone was abusing the issue of money and was looking forward to it because inflation would devalue the loans. The professor says that mild inflation, which he compares to a body temperature between 37 and 37.5°C, is still manageable, but when it reaches the figurative 39°C, the economy is one step away from collapsing.  

Commenting on the Serbian government meeting with the IMF delegation, Zec says that that organization represents a kind of international policeman or school inspector.

“They come if a country has a problem with external liquidity and a debt repayment problem”, he explained.

Professor Zec does not believe that the new government can fix current the situation, nor does it think that it is its job, but rather its job is to create a system which will function on its own.

“The job of a government minister is to make sure that the country has transparent and good laws. A system must be created so that things run normally. There is no clear system here and it is managed manually, so to speak. Figuratively speaking, our politicians think that if they get their hands on the steering wheel, they will drive us to a happy future. And it doesn’t matter that the vehicle has no fuel and that the brakes are old,” the professor explains.

(Danas, 02.11.2022)


This post is also available in: Italiano

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