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PTI performance last 3.5 yrs

How will you rate PTI

  • Less then 5/10

    Votes: 19 20.7%
  • 7/10

    Votes: 57 62.0%
  • 10/10

    Votes: 16 17.4%

  • Total voters
    92
Funny, I have studied economics- have never heard any economist say that overvaluing your currency is a positive thing ever.
Yeah the thing is you studied never applied that theory into practice.
Every country has a different scenario. A country like Pakistan can't afford free floating. A short term inflation of even few years will crush industries and specially the poor and middle class population of millions.
 
Well its positive because all of sudden your gdp is up, your inflation is down, your debt is down

However, can you keep doing it..


Its like getting a morphine shot and becoming bullet proof for 2 seconds before you drop dead

So its good while it last

E.g we have low inflation in 2016-2017 while it lasted
It’s a dumb thing to do. It’s like giving people heroin shots for a cold. The right thing to do is keep an undervalued currency, which is what all the East Asian countries did to become export based economies.

Yeah the thing is you studied never applied that theory into practice.
Every country has a different scenario. A country like Pakistan can't afford free floating. A short term inflation of even few years will crush industries and specially the poor and middle class population of millions.
Have you studied economics formally? What was your terminal degree?

Yeah the thing is you studied never applied that theory into practice.
Every country has a different scenario. A country like Pakistan can't afford free floating. A short term inflation of even few years will crush industries and specially the poor and middle class population of millions.
Industries that are export focused are not bothered by short term domestic inflation. You are speaking from a place where the sun don’t shine. For your own education, please pull out the inflation numbers from Korea in the 60s/70s when it became an export economy; from Malaysia in the 90s; from Japan in 50s/60s; then pull out Pakistans inflation numbers-

You will see a pattern- double digit inflation is a medicine for our economy where our political economy based on pseudo Marxism has made us the cheapest place to live on the planet. Double digit inflation means we move towards the global average in terms of pricing and become more competitive. It’s also an informal tax on the black/undocumented/informal economy.
 
In summary
 

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Yeah the thing is you studied never applied that theory into practice.
Every country has a different scenario. A country like Pakistan can't afford free floating. A short term inflation of even few years will crush industries and specially the poor and middle class population of millions.

Bro a free float currency never devalues more in the long run as compared to a fixed currency ( when the bubble bursts and one is no longer able to support it). The negetive impact is also far far worse.

PTI faced 4 years of backlog inflation when the overvalued currency support was rolled back. ( The inflation which was previously artificially managed by subsidising imports )
This was the toughest decision that any government ever took.
Since you mentioned industries, now look back the LSM growth is at 10.6%.

Had PTI not made that decision we would be Lebanon by now.

Overvalued currency is the opposite of sustainable balanced growth.
 
It’s a dumb thing to do. It’s like giving people heroin shots for a cold. The right thing to do is keep an undervalued currency, which is what all the East Asian countries did to become export based economies.


Have you studied economics formally? What was your terminal degree?


Industries that are export focused are not bothered by short term domestic inflation. You are speaking from a place where the sun don’t shine. For your own education, please pull out the inflation numbers from Korea in the 60s/70s when it became an export economy; from Malaysia in the 90s; from Japan in 50s/60s; then pull out Pakistans inflation numbers-

You will see a pattern- double digit inflation is a medicine for our economy where our political economy based on pseudo Marxism has made us the cheapest place to live on the planet. Double digit inflation means we move towards the global average in terms of pricing and become more competitive. It’s also an informal tax on the black/undocumented/informal economy.
Depends..its smart for your political party
People love ishaq dar

Same way junkies love doctors who give morphine
 
Bro a free float currency never devalues more in the long run as compared to a fixed currency ( when the bubble bursts and one is no longer able to support it). The negetive impact is also far far worse.

PTI faced 4 years of backlog inflation when the overvalued currency support was rolled back. ( The inflation which was previously artificially managed by subsidising imports )
This was the toughest decision that any government ever took.
Since you mentioned industries, now look back the LSM growth is at 10.6%.

Had PTI not made that decision we would be Lebanon by now.

Overvalued currency is the opposite of sustainable balanced growth.
Yeah also imagine peoples shock when you tell them about J-curve theory for currency devaluation.

TLDR- That it takes a couple of years to see the benefits of currency devaluation and that in the short term it may even have the opposite effect.
 
I am a PTI voter since 2013. But that currency free floating is something I personally dissapprove.
I disaprove it too
Just like i dissaprove how the world works
I dont want to work but noone will give me free food

I wish we had more oil then russia..its about 100b$.. As long as we can get that we dont need to free float
 
For your own education, please pull out the inflation numbers from Korea in the 60s/70s when it became an export economy; from Malaysia in the 90s; from Japan in 50s/60s; then pull out Pakistans inflation numbers-

For those too lazy to do it, here is inflation in South Korea - transformation period is from 62-80 - this is the starkest one, others also have elevated inflation too but not as stark.

1F831AAF-FA28-43BB-9780-FEE048FB8F12.jpeg
 
I am a PTI voter since 2013. But that currency free floating is something I personally dissapprove.

Probably the best reason to adopt a floating exchange rate system is whenever a country has more faith in the ability of its own central bank to maintain prudent monetary policy than any other country's ability. The key to success in both fixed and floating rates hinges on prudent monetary and fiscal policies. Find out what is good for Pakistan ?
 
That free floating of rupee was the worst idea.
Yeah it's much better to artificially set dollar price and import wealth of the world without any consequences
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Funny, I have studied economics- have never heard any economist say that overvaluing your currency is a positive thing ever.
Then you haven't heard of the economist in my DP and Patwaris that worship his economic policies

I am a PTI voter since 2013. But that currency free floating is something I personally dissapprove.
Loooool. Macro economics is facts based science. It cannot be run on your personal opinions 😂
 
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Probably the best reason to adopt a floating exchange rate system is whenever a country has more faith in the ability of its own central bank to maintain prudent monetary policy than any other country's ability. The key to success in both fixed and floating rates hinges on prudent monetary and fiscal policies. Find out what is good for Pakistan ?

@Norwegian khote lets have a discussion on economics rather than doing haha. You are posting the same chart time and again. Even IK did not devalue your currency. Why is it ?

Put it in your thick head that fixed rates are chosen to force a more prudent monetary policy; floating rates are a blessing for those countries that already have a prudent monetary policy.
 

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