Shervin Pishevar has been criticizing the government over the last 21 hours through his twitter account. What has been attracting attention and even drawing some significant air view even from the mainstream media is how robust and aggressive the Uber investor has been in his critics. Since resigning from Sherpa Capital due to sexual allegations, Shervin Pishevar has remained silent only to resurface with what seems to be the new-found enthusiasm of using the social media platform to express his perception towards various economic aspects.
Using financial instruments as a means of controlling the financial aspects of the country seems to be an essential issue for Sherpa Capital founder. It has become evident that the government tries to control economic elements such as interest rates and inflation through the selling of bonds to the public or the banks. If there is increased inflation, the government will sell bonds to increase saving among individuals while at the same reducing the purchasing power hence lowering the boom. The policy also prevents banks from lending much money to the economy which causes rise as they chose to invest in bonds.
However, Shervin Pishevar considers this method outdated, and it is a policy that cannot be relied upon to change the increasing inflation in the country. There seems to be a degree of sense in what he is saying. Selling and buying of financial instruments such as bonds have been in existence for a more extended period such that they seem to have lost their effectiveness. The country is still dealing with what is being described as crippling inflation, but no one knows how much it can grow.
What does Shervin Pishevar mean? Should the government stop using financial instruments such as bond as a method of controlling inflation within the country? Not sure. What the renowned investor is trying to say is that you cannot continue doing the same thing and expect different results. This means that it is high time that the fiscal policy formulators should start using other methods to control the increasing cost of goods. Market forces, by themselves, are not effective enough to manage a broader economy, which means that radical policy change should be adopted.