Economists: Lifting Subsidies Will Cause Hyperinflation and Further Devaluation of Pound

  • Economics
Economists: Lifting Subsidies Will Cause Hyperinflation and Further Devaluation of Pound

Completely lifting subsidies on all commodities coupled with the expected $400 cash withdrawals from the banks will trigger unprecedented hyperinflation and sharp devaluation of the Lebanese pound if the government fails to come up with an alternative plan to cushion the initial shock.

This was the general impression of most economists and bankers who were interviewed by The Daily Star.

The caretaker government, Parliament and the Central Bank have so far declined to work together to devise a stratgey to alleviate the suffering of the Lebanese once the subsidies are totally removed.

Read the Full Article at the Daily Starhttps://bit.ly/2SQm8Tb

 

Source: The Daily Star