Coffee, Economics and IMF - Simplified Inflation You DM someone for a coffee. They accept one year later. You end up paying 60% more. Import Restrictions You DM someone for a coffee. They accept one year later. You realise that all cafés are closed as they've run out of coffee beans. Unemployment You DM someone for a coffee. They accept one year later. You realise that the barista is missing. Currency Depreciation You DM someone for a coffee. They accept one year later. You pay double the price because LKR has depreciated by 100%. Default You DM for coffee. Everyone keeps accepting. Café keeps adding to your tab. Eventually, you tell them you have no money to pay. Money Printing You send DMs on a borrowed iPhone and take everyone to your dad’s café. You borrow more from dad for reloads and send more DMs. Debt Restructuring You DM everyone for coffee and they keep accepting. Café keeps adding to your tab. Eventually, you tell them you have no money to pay and ask them to give you 5 more years to repay in exchange for a promise to stop sending DMs. Central Bank Swaps You DM everyone for coffee, they keep accepting and café keeps adding to your tab. You send more DMs but take them to a different café. IMF You DM for coffee. Everyone keeps accepting and the café keeps adding to your tab. Your family doctor agrees to bail you out, only if you get a job (income) and switch to green tea (healthier/cheaper). SOE Reforms You DM for coffee. Everyone keeps accepting and the café says either pay up or shut up. @CBSL Monetary Policy You DM for coffee. Everyone keeps accepting and the café keeps adding to your tab. Interest rates rise to levels so high that café decides to stop giving coffee on credit and you decide it's better to save money than drink coffee. If you enjoyed this: • follow me @TheGayan for more insights on #investing • retweet this tweet to share with others @CSE_Media