Crisis Innovation Policy: On Inflation and Interest Rates

The recent article in the IMF Blog looks at economic growth and in Asia and the Pacific and the difficult policy trade-off.  

Suggested policy responses:

i. Protect the most vulnerable from rising fuel and food prices.

ii. Anchor medium-term fiscal policy frameworks to ensure debt sustainability.

iii. Tighten monetary policy where inflation is rising faster.

iv. Enact economic reforms to boost long-term growth (boost productivity & education reform).