Governments enforce some promises but do not enforce most promises made between people. Do you think it is important for governments to enforce certain promises? What kinds of promises should be enforced?

 Governments enforce some promises but do not enforce most promises made between people. Do you think it is important for governments to enforce certain promises? What kinds of promises should be enforced?

As always, trust is hard to build but very easy to lose. If a government does not enforce all of its promises, it will lose its credit over time. What happens if citizens of a country do not trust their government? Currency policy is an excessively sensitive example of our daily life. Turkey's recent currency crash is a good example. We used to think that our government will do the best it can to make our lives better not worse. However, it seems did not happen in Turkey. 

In 2021, Turkey’s currency has been falling to an all-time low against the U.S. dollar. Nonetheless, President Recep Tayyip Erdogan presses ahead with a widely criticized effort to cut interest rates despite surging consumer prices. As a result, families are struggling to buy food and other goods. As we know that lower interest rate will increase the money supply since when all else being equal, a larger money supply lowers market interest rates, making it less expensive for consumers to borrow. Conversely, smaller money supplies tend to raise market interest rates, making it pricier for consumers to take out a loan. Now, the Turkish lira has lost around 40% of its value since the start of the year, becoming one of the world's worst-performing currencies. 

Basically, I think a currency or the monetary system is like a contract signed by the government to keep our economy going and growing. A government must promise to ensure the value of its currency is good enough to make its citizens live better. Although generally, a government has the authority to issue its currency, it is still created based on trust. I trust the money you give to me so I work hard to earn it. If it keeps losing its day by day, no one wants to work for it. Therefore, I think one of the very important promises that governments must keep and enforce is to keep the monetary system well administrated. Otherwise, every country can be like today's Turkey, the economic turmoil sends desperation and inflation soaring. Threatened by a currency crisis, many people lining up for subsidized bread, cutting back on meat, and fleeing for a better life in Europe.

Reference

SUZAN FRASER, A. P. (2021, December 3). Explainer: Turkey's currency is crashing. what's the impact?: Taiwan news: 2021-12-03 22:37:24. Taiwan News. Retrieved December 6, 2021, from https://www.taiwannews.com.tw/en/news/4364306.