Abandoning the fight against high inflation in favor of accelerating economic growth is a fallacy.
People who propose this to the Central Bank are following the mistakes of US and European economists in the 1970s.
The misconception that high inflation can be exchanged for additional economic growth has led to stagflation in the US and Europe, Deputy Chairman of the Central Bank Alexei Zabotkin told Rossiyskaya Gazeta .
Zabotkin explained that in the 1970s, Americans and Europeans faced unemployment and crime.
The US had to raise rates to 20 percent and go through two recessions to deal with inflation.
According to the Deputy Chairman of the Central Bank, global experience clearly shows how easy it is to spin up inflation. However, it is incredibly difficult to slow down this process.
Therefore, the Central Bank of the Russian Federation believes that sustainable economic growth cannot be purchased through high inflation.
