Coping with the inflation cycle

The structural theory of inflation says inflation is caused by a ‘structural’ weakness in a country’s capacity to produce goods or maintain an adequate flow of supply. General under-productivity creates imbalances between supply and demand. Inflation that stems from structural issues may not be easily changed by monetary policy.

“The inflation rate is falling faster than we expected, which is a positive sign for our economy,” says Finance Minister Muhammad Aurangzeb, adding, “Continued...