A few leaders of OCDE countries are speaking wishfully about inflation, stating that this is just "a temporary peak". However this may or may not be the case. Even the people with best information (CEOs of large companies and perhaps some ministers) are unclear about how long do we have to endure inflation.
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
My translation for this is "we do not know if we can effectively pass the burden of all the money we printed onto the labour or the salaries will rise paving way for sustained high inflation in two years".
The inflation is the speed of decreasing the value of the currency. While the value will most probably never increase back, the speed of decreasing the value will slow down.. sooner or later, possibly after a complete crash and recovery of markets though.
When will that happen? Nobody knows. Not too soon, though. There are far too many variables and although the declarations go towards having low inflation, politicians have to spend in order to keep their voters happy.
About the salaries, the things go even more interesting: from time to time the syndicates decide to come back into the game and ask for salary rises, covering the inflation (sometimes better sometimes worse) for some of the workers. Of course, some others will suffer; of course, this can lead to even more inflation.. it's a cat and mouse game. And while it can slow down now and then, it won't stop.
Now, with all that printed money, with the pandemic far from end, the politicians are trapped by their exaggerated optimism in spending funds: they have to spend even more and don't know how to do that nicely. So for short and medium term the inflation is bound to rise.
