21 Dec 2016

Inflation threat after PNG central bank prints money

From , 6:04 am on 21 December 2016

An Australian economist says the Papua New Guinea central bank is risking serious inflation by effectively printing money.

The Australian National University's Paul Flanagan, who used to worked with the PNG Treasury, says the Bank of PNG is buying up surplus government securities that could not find a buyer on the open market.

He explained the impacts of such a move to Don Wiseman.

Papua New Guinea Kina.

Papua New Guinea Kina. Photo: RNZI