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Tymoshenko criticizes monetary emission policy

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Oct. 20, 2010, 8:32 p.m. | Business — by Interfax-Ukraine

Tymoshenko says an additional issue of Hr 83.6 billion triggers growth in consumer prices.

Leader of the Batkivschyna party Yulia Tymoshenko says that an additional monetary emission by the Ukrainian government of Hr 83.6 billion has already translated into growth in consumer prices, according to a posting on Tymoshenko's official website. "The economy is not just philosophy, it is strict mathematics. If the issue is more than Hr 80 billion, at the end of the day, we'll get inflation that will effectively be uncontrollable. This is the rule - By switching on the [money] printing press, the country could get into such an uncontrollable condition, that it won't be able to get out of it," she said at a press conference in Chernihiv on Wednesday.

Tymoshenko said that as a result of the monetary emission and inflationary growth, the problem of national currency stability will become acute.

"The next thing could be the hryvnia… it will depreciate, I believe, after the election. Most likely they [the government] will lose all levers, both for tariffs and control over the hryvnia's stability – and there will be a lot of bolts from the blue after the election," she said.

"Economic collapse means an ignorant financial and economic policy, and this [results from] the deep, systematic unprofessionalism of the current team that has come to power. A professional from a government financial and economic team would perhaps have shed bitter tears because of a lack of money, but would have never touched the printing press – as a professional is well aware that this is an atomic bomb," she said.

As reported earlier, in 2009, the members of the Bloc of Yulia Tymoshenko suggested permitting a limited emission of money to combat the crisis, such as done by the leading nations' central banks. Moreover, Tymoshenko, who headed the government then, criticized the National Bank of Ukraine for the refusal to finance preparations for the Euro 2012 through advanced financing by the central bank of budget expenditures.
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Anonymous Oct. 20, 2010, 8:45 p.m.    

Better tell that to the Fed then Yulia as there will be a lot of $ around as well and as we all know, here in Ukraine (domestically and international money markets wise) $ is king and not the UAH.

In fact, it seems Sterling is about to print a lot more too.

Maybe they are all wrong?

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Anonymous Oct. 20, 2010, 8:46 p.m.    

LOL - do not forget that this is the same Yulia who told the nation that the financial crisis would not affect Ukraine.

That speaks volumes about her economic skills.

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Anonymous Oct. 22, 2010, 5:45 a.m.    

It's not just her skills. The whole world is in an economic

and financial mess. She's no different than anyone else in that regard.

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Anonymous Oct. 21, 2010, 11:50 a.m.    

And her response to the rise in oil prices was to cap the price of refined products ... refineries responded by stopping production - such a sound economic brain. Additionally, under her more recent tenure the IMF halted funding due to opaque practises ... she would be well served to take the same route as her daughter and spend some time at the LSE.

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