Striking comment on exorbitant prices from Mahfi Eğilmez: 'Many of us attribute it to the greed of shopkeepers, but...'

Former Treasury Undersecretary Dr. Mahfi Eğilmez continues to share his findings and assessments regarding the Turkish and global economy.

Eğilmez shared a new, striking message on his personal X account. Stating that "there is a widespread expectation of devaluation in society," Eğilmez conveyed the following regarding the formation of exorbitant prices:

"The vast majority think that the exchange rate remains low and that it will rise with a correction. For that reason, shopkeepers are keeping prices high according to the exchange rate they think it should be. Many of us attribute the abnormality in prices to the greed of shopkeepers. Of course, there are greedy ones among them, but for example, shopkeepers were not doing such excessive pricing until September 2021. Because the balances of the economy were, for better or worse, in place. The moment we lowered interest rates below inflation and continued on that path, all balances were disrupted. And this disruption brought the already existing moral decay, management decay, and social decay to its peak. That is why I have been trying to explain from the very beginning that it is no longer possible to return to those old balances just by increasing interest rates. We cannot get out of this without restoring all the balances we disrupted along with the economy. Temporary improvements in the economy do not mean an exit."

There is a widespread expectation of devaluation in society. The vast majority think that the exchange rate remains low and that it will rise with a correction. For that reason, shopkeepers are keeping prices high according to the exchange rate they think it should be. Many of us attribute the abnormality in prices to the greed of...

— Mahfi Eğilmez (@mahfiegilmez) September 15, 2024

News Source: 12punto