How about my era, huh? Well, it used banking deregulation.
Banking deregulation in 1983 and 1988 had good intentions to promote economic growth by simplifying the lending process (credit).
During those years, Indonesia faced reduced income due to falling oil prices. So, they decided to make it easier for banks to provide loans.
As a result, non-performing loans increased, corruption in the banking sector grew, and, of course, banks ran out of money (liquidity crisis).
In such a situation, coupled with the impact of the 1997 Asian Financial Crisis, Indonesia experienced hyperinflation of over 70%.
Do you remember:
"Hey, meatball seller, come here, I want to buy."
"Just one bowl for 200 rupiah..."
Now, how much does a bowl of meatballs cost?
Will a situation like the one above happen again?
Maybe not in the near future, but we can't predict the years ahead.
If not hyperinflation, then there will be inflation every year (a gradual decrease in the value of money).
Prepare for mitigation!
