PanARMENIAN.Net

Floating rate policy: Double Negative Attack on Armenia’s Population
09.03.2009 19:02 GMT+04:00

/PanARMENIAN.Net/ `The population suffered most as a result of the
dram devaluation. `The dram devaluation has led to the price increase
on food stuff. The tariffs on utility services will also rise from
April 1, and the population will be double-attacked in this respect,
said Tatul Manaseryan, , PhD in Economic Sciences, at the
press-conference in Yerevan. In order to alleviate the sufferings of
the population regarding the social hardships, it is necessary to
raise the average salary up to 30 000-40 000.’

Speaking of the situation regarding the dram devaluation Tatul
Manaseryan said that it was inadmissible to spend about $700 m on the
dram rate control, and added that during the recent time Armenia has
spent on the dram control more than the World Bank, the International
Monetary Fund and Russia taken together granted to the country.

Being the supporter of the stage-by-stage implementation of the
floating rate policy, Manaseryan mentioned that the floating rate
policy is not an end in itself, so the Government must take radical
measures to overcome the current situation. The International
experience practices the mechanism of State purchases which enables to
control the prices and to fight against the unfair market competitors.

The economist thinks that the global crisis will lead to structural
changes and new economy models will be established where the State
will partially regulate the national currency rate.

From: Emil Lazarian | Ararat NewsPress