In a recent interview with China Daily, Professor Erick Behar-Villegas, Dean of the Business Administration Faculty at Berlin International, shared his expertise on inflation in Latin America. As a Professor of economics and policy, he offered valuable insights into monetary policy.
Inflation is currently the most significant economic problem facing Latin America and the Caribbean, with Mexico and Colombia experiencing some of the highest levels in two decades.
During a conversation with a journalist from China Daily, Professor Behar-Villegas discussed the potential implications of Mexican President Lopez Obrador's planned inflation summit. He explained that, beyond the technical aspect of monetary policy, inflation also has a psychological component linked to expectations and narratives. However, one enormous risk that low and middle-income countries face in their policy decisions is privileging ideological solutions that cater to the short term rather than the long term. This is clear with the dangerous proposal of price controls to attack inflation. For the Professor, "It has not worked and will not work. The contrary tends to be the unfortunate aftermath. Scarce goods and thus higher prices".
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