According to the conclusion of the working group of IMF, the implementation of welfare program will boom inflation. Mongolian currency becomes weaker against foreign currency and it will heat up the consumption price of. The inflation rate reached 17.5% by January 2008. The experts concluded that money distribution and social welfare expenditure are severely affecting. If a populist program to give 50.000 MNT to citizens of Mongolia will be implemented, the inflation rate will reach beyond 20% and loaf of bread will cost far more than 1000 MNT. Therefore, IMF strongly recommends to the Government of Mongolia, not to implement any new social welfare program.
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