Photographer: Dimas Ardian/Bloomberg

Mafia Making a Racket With Chili-Pepper Inflation

This is one situation where raising interest rates won't be enough

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Every week, hosts Dan Moss and Scott Lanman bring you a jargon-free dive into the stories that drive the global economy.

Central banks tend to be more comfortable pulling levers of economic policy than being on the front line of crimefighting. For the monetary gurus of Indonesia, those two worlds have collided. Central bankers say the mafia is driving up the price of chili peppers, the Southeast Asian nation's favorite spice. This is one situation where raising interest rates -- the common tool to fight rising prices -- won't be enough. Dan and Scott talk with Karlis Salna, an economics reporter in Bloomberg's Jakarta bureau, to get the story.

 

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