Thursday, March 13, 2008

Inflation in Mongolia

I'm getting nervous about the runaway inflation in Mongolia. Their economy seems to be in complete turmoil. This article says that "Mongol Bank’s inflation measurements had it at 15.1 percent in December 2007, but in the year to January has it at 17.5 percent. The inflation rate rose another two points in January of this year, despite the government establishing a council to stabilize consumer prices."

We are raising our support based on February 2007 prices. Real estate has doubled since then, and vehicles are way up. I hope we don't arrive on the scene only to discover we can't even live at poverty level in a developing country.


aaronash said...

So what happens to the money you raise? Do you take it with you and deposit it in a local bank, or does it stay with an American bank until you need those funds?

Chris said...

I'm not exactly sure how it will work in Mongolia. When we were in the Philippines, we had the money deposited monthly in a bank in Kansas and just wrote checks on that account to our bank account in the Philippines. It took about 3 1/2 weeks for the checks to clear, but then we could take the money from our Philippines account.