BY EDWARD THEOPHILUS

Inflation is a term that expresses everywhere without a practical solution. This term reiterates in many countries without a solution and policymakers expressed the term for covering incapability and the economic history of Sri Lanka before European invasions gave a successful solution to inflation, it is valid for today too.

The meaning of inflation has three definitions: a cost push, b demand pull, and uncontrollable price creasing of goods and services.  In history, economic planners in Sri Lanka used boosting production and services. As the successful solution, boosting production and solution is the theoretical and practical answer for inflation.

Nobody talks about this solution and reiterates the term without a solution.  Why policymakers in Sri Lanka cannot explain the success of historical strategy to control inflation that support to make profits to business people from the producers of rural community.

When I was small, my parents educated to gain knowledge and skills to write used by pens and make producers using a mammorty (agricultural equipment used by farmers) and it was a successful strategy to control inflation, however, many production and service companies love to inflation because they can make more profits when there is an inflation. In the 1960s, monetarists advised charging inflationary tax, but the actual impact was further increasing prices.

The government of Sri Lanka must launch a production initiative rather than blaming for inflation. The basic aspect of the price theory is when supply increases, the price will come down. This theory was known by kings and queens, in history, however, modern economic advisors are silent and talk hard words and support for making profits for business people.