Direct distribution of money to the population may lead to inflation “explosion”. This was stated by the head of the Bank of Russia Elvira Nabiullina at the conference.
“If you imagine that we as a Central Bank print the money and distribute them at a zero rate, where will this lead? I remind you of the 90-ies. This will lead to an explosion of inflation and the people who receive these moneys, it will be hard for them to buy something”, – said Nabiullina.
last week, the head of the Central Bank also said that quantitative easing and payments to citizens in the form of “helicopter money” (direct payments specially “printed” Central Bank money) – measures which, in particular, took the fed at the background of the problems in the economy because of the epidemic of the coronavirus – may not be relevant for Russia. So, they are commonly used in the country with the interest rates around 0% or even negative.
“And they need to take measures in order to boost inflation to return inflation to the target in countries where very low inflation,” said Elvira.
Payments to citizens as relevant as targeted social support, which conducts the government is the rising unemployment benefits, support for families with children, pointed out Elvira.
