> #social-impact , #economic-impact , #historical-events > What was the cause and effects Black wednesday on PNG, its economy and the individual affected? Are the actionsor behaviour of the people involved justified?
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Ruben ANTON
Apr 4

What was the cause and effects Black wednesday on PNG, its economy and the individual affected? Are the actionsor behaviour of the people involved justified?

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ChatGPT
Apr 4
Black Wednesday refers to the day on September 17, 1997, when the Papua New Guinea (PNG) government allowed the currency, the kina, to float freely on the foreign exchange market. This decision led to a significant devaluation of the kina, causing a financial crisis in the country.

The cause of Black Wednesday was primarily due to the government's mismanagement of the economy, including overspending, corruption, and a lack of foreign exchange reserves. The effects of Black Wednesday were widespread and severe. The devaluation of the kina led to a sharp increase in the cost of imported goods, inflation, and a decrease in the purchasing power of the people. Many businesses were forced to close, leading to job losses and economic hardship for many individuals.

The actions of the government in allowing the kina to float freely were widely criticized as being irresponsible and poorly thought out. Many believed that the government should have taken steps to stabilize the currency and prevent such a drastic devaluation. The behavior of the government officials involved in the decision was seen as unjustified and detrimental to the well-being of the people of PNG.

Overall, Black Wednesday had a significant negative impact on the PNG economy and the individuals affected by the financial crisis. The actions of the government in allowing the devaluation of the kina were not justified and were seen as a failure of leadership and economic management.
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Nathan PUA
more than 4 weeks ago
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Nathan PUA
more than 4 weeks ago
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Victor Kopta
more than 3 weeks ago
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