Inflation is both good and bad, former Econ chair says
By JOAHNA LEI E. CASILAO
INFLATION may be good or bad depending on one’s point of view, former Economics department chair Emmanuel Lopez explained during The Political Science Forum’s annual public lecture on Wednesday.
In August, the country’s inflation rate rose to a nine-year high at 6.4 percent.
“Economically, there are good points [to] inflation [...] Dadami ang foreign currency reserve natin. That is the lifeblood of the economy of any country. That’s why inflation is not so bad after all,” Lopez explained.
The professor said a high inflation rate causes a decrease in the prices of export products, thereby creating higher demand.
However, Lopez added that a high inflation rate is only beneficial for people who have something to invest in.
“Remember, when you...