Norilsk Nickel CEO Vladimir Potanin compared cheap loans for the economy to a snake devouring its own tail.
Cheap loans during a labor shortage have an immediate impact on inflation.
This approach will lead to demand heating up again, the RBC article emphasizes.
Given the shortage of personnel, the influx of cheap loans into the economy, as practice shows, will not lead to rapid growth in supply.
In conditions of labor shortage, reducing high interest rates on investment loans will not lead to the desired results.
The issuance of unreasonably cheap loans will immediately affect the growth of inflation.
Money invested in production can lead to higher wages and increased demand.
Potanin also noted that when distributing preferential loans, the question always arises as to who to give them to and how, which seems like a matter of taste.
