On these days the society is most interested in prices and especially the prices of stapled goods. Because one day the price of onion rises, on the next day the potato price jumps up. And before that the dairy product producers did the same thing – rose the prices. No one understands anything. Seemingly the global crisis is over. Moreover, everybody is speaking about the recovery and rehabilitation of the economy. And they do it almost in all the countries, except for Armenia, indeed. During the year of the global crisis the government of Armenia accurately took the steps of recovery as would do the governments of developed countries. For example, just like everyone they also raised the interest rates for refinancing. When the peak of the crisis was overcome all the countries have done the exact opposite. According to a simple economic logic at the moment when the economy starts to grow the most expedient thing to do is to provide money for the economy. In all the developed (and not quite developed) countries of the world the current refinancing level has a record index. In the US it is currently 0,25%. In the past it was 1 percent. In Great Britain the index is 0,25% (instead of the previous 1%). During the crisis and the following period the leaders of economy of various countries would try to productively control refinancing in order to activate and revive the economy. But our case is different. The Central Bank of Armenia only has one legislative obligation – to make sure that the crisis doesn’t get too “spoilt” to damage the official statistical data. During the implementation of its single duty the CB always takes the step. Because of the lofty goal of preventing the crisis our CB is trying to empty the economy from money. And now Armenia leads the list of the highest refinancing states. In our country it amounts to 7,75%. The evil people are saying that this year the postponement of the payment of the salaries, pensions and subsidies is not connected with the lack of money in the state budget. Our government, jointly with Armenia is concerned about the money circulation. They are concerned and are trying to cut it with all the possible methods. The government is delaying its payments. The CB is raising the interest rate of refinancing. The sincerity is obliging to emphasize that among the countries, which provide expensive money we share the leading place with Russia, where there is the same interest rate – 7,75%. But we approached 7,75% from the other side. Our previous index was 7,25%. And Russia came to this number by reducing the index from 8%. So in the aspect of tendency Russia is trying to decrease the value of money in its territory and we do the opposite. The consequences of choking the economy are essential. So we can bring us any number of examples. Therefore, Star supermarket was sold. It is a fact that due to the lack of financial means the small and medium businesses don’t have any room to breathe. But it was news to find out that the large businesses are also suffering. The network of Star supermarkets has been having financial issues for a protracted period. Many of the local firms would complain a lot that the Star owned many of them much debt. And it wouldn’t pay for a long time. Later in the processes “threaten” to become more interesting. This would become interesting for the ones, who think that “rich people also cry.” With the lofty goal of preventing the inflation our government sacrificed all the prospects of activating the economy. And all this was done to prevent inflation. The CB doesn’t succeed in fulfilling its duties. But as it’s well known the government always tries to do what’s best but ends up doing as usual. Moreover, all the applied means are having counter effects for the economy. By summing up the economic indices of 2010 the statistics publicized that during one year the inflation of prices of vegetables is over 25%, sugar – over 20%, meat products – 15%, fish products – 10,4%, fruits – 13,5%, natural and vegetable oil – 8%, petroleum – 17,5%, diesel – 21%, etc. And this list may just go on non-stop. The inflation in our country has from 3 to 5 times exceeded the indices of the global inflation. I am not sure but I will dare to assume that the reason is that the CB is in charge of preventing inflation. And the CB fails it with glory. So perhaps it is the time to exclude the single legislative duty of the CB. Several years ago the CB has ordered and prepared animation films, titled “inflation monster” to demonstrate to people that they are fighting against inflation. It’s time to order and prepare a new film about inflation. We didn’t succeed in killing the monster of inflation. On one hand, the inflation monster is prospering and on the other hand the CB. The word prospering doesn’t imply any political context and is not linked with any party.
