Dear Editor
The fallacy that food inflation in Guyana mirrors (8%) or the true rate of inflation is 1.6% in our country is (deceptive). No country in the world has had explosive government spending over 4 years (2021- 2024) of 300% as ours with an accompanying lower inflation rate (Math is not Mathsin as some would say). We Guyanese may have to rewrite some economics textbooks and laugh at Samuelson, Krugman, and Banerjee, great economist, no way!
Guyana should make public how it calculates food inflation (inflation generally) or share its information with one of the following, the University of Chicago, Harvard University, Massachusetts Institute of Technology, University of Pennsylvania, or Cambridge, to validate (the basket and weights) to measure inflation. Many graduate students will quickly jump at this at no cost. Looks like we are using an outdated model, an inverting subsidy (fuel, Elec, water, etc.tc.) to distort the true measure.
My view is the inflation information is arbitrary, fictitious, and not real. Looks like a Soviet model, tell us what we need to know. I am also concerned the World Bank/IMF accept these details. The Bank of Guyana’s balance sheet should be exploding with Guyanese dollars, else someone is hoarding. I have studied enough economics to know this smells like Bourda Market on a Saturday morning.
Most Guyanese may be disinterested in the Government numbers, it appears deceptive. Something is amiss. So, let us invite an independent body to help us. It is not a criticism of the Government but to inform the Government and improve our governance. The basket of goods should have changed empirically with the relative weights in measuring true inflation.
Sincerely,
Everton D. Morris
