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Topic: Why is Inflation Happening All Over the World At Once? - page 2. (Read 953 times)

hero member
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The amount of money in circulation continues to increase will cause inflation in a country, this will have an impact on prices which will also continue to rise. If the amount of money in circulation doubles, prices will also double. An increase in the amount of money in circulation can occur, for example, if the government uses a deficit budget system.
This can be one reason for the inflation which is make by the government of any particular country. Do you think current inflation is make by the government? Defiantly not in most countries today, inflation has been identified as the main reason for the War which is consisted by Russia and Ukraine. Generally, if the demand of any product increased in the market, people have to buy that product with more money. Due to the war, food shortages and a large fuel crisis make a big impact in the market. As a result, the cost from both sides has increased a lot.
hero member
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There are many factors that increase global inflation, but I think the most important was the energy crisis. We have experienced a global energy crisis. Energy prices have reached new highs and continue to do so. In this case, we all had to grapple with a common problem, but countries dependent on foreign energy have to grapple with bigger problems. Also, we have all faced problems in the balance of supply and demand. So, because we have common problems, we faced a common problem. In order to solve these problems, we need a common mind that can provide an environment of peace and trust.

Energy crises and war are only catalysts for higher inflation, not the cause of global inflation. In my opinion, whether there is war or not, energy crisis or not, inflation still occurs, which is caused by the government printing money out of control. It can be said that the government is having a hard time managing our economy, and every time something goes wrong, they can't find a better solution than printing more money. And when prolonging the money printing will lead to inflation is inevitable. This is not the first time that our economy has had inflation.
legendary
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Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline
The answer to your query is very straightforward, Out of 195 countries 65 countries are using US dollars as the national reserves. (it could be more). The point is, Devaluation of the US dollar will cause to decrease in the value of national reserves as well and they will bleed with the US dollar. As it is happening right now.

People in my country are earning in PKR and their wages were incremented from 25k per month to 30k pkr (lower wages for labor). While the overall international market is earning more but the prices are almost the same. Which increases inflation. The financial system of all over the world is broken because big investors (4%-5% of the overall population) are controlling them.

Banks are making it easy for people to borrow more money and more money in the hands of people causes more demand of supplies which increases the prices (inflation) plus to meet the gap banks increase the interest on the loans which in return effects the overall economy in the long run if proper practices were not adopted (by the government) which results in bankruptcy of Banking system and USA dollar will start to bleed and other 65 countries will also bleed with them.
Inflation is the great equalizer. It makes no difference if you're wealthy, poor, young, elderly, or if you're a lefty or a righty. A unifier of nations that has thrust us all into a financial arms race. Who, though, is responsible? Aaaah, those banks! Taking the fun out of the playground by stealing the kids' toys and reselling them for a profit. Investing heavyweights? Don't start anything! They are the cosmic puppeteers who set the world on fire. Nevertheless, at least we're dealing with this together. Let's work together to stop inflation and bring down the powerful. Working together, we can make a difference.
full member
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I believe it's because of globalization. Even with different economies, policies, government, and such. Every countries are working very hard to be in good terms with other countries because it'll benefit their economy. Being in good terms with other countries gives you easy access for trading, importing and exporting goods, and making allies whenever you need other countries help. Also another thing is getting loans and investments from your allies. You can apply the saying "no man is an island". You'll thrive when you have connections and help from your friend country. And since countries are trying to be close with others, when one country faces a crisis, it'll also affect another country. For example, if one country's economy starts declining, those countries who lends that country or when they have investment, it'll affect them. Also in trading. Since countries are importing and exporting goods, if there's an inflation, that will also affect the amount they can import or export.
member
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In my opinion, the thing that influences inflation to occur simultaneously around the world is because of the ease of getting information and global trade or transactions that are getting easier, when there is inflation or a fantastic price increase for a product in a place or country, it will be easy for someone to meet those needs, and when the country of origin experiences a price increase it will automatically affect the consumer country.
full member
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Inflation happening all over the world all at once because of some like increase in money supply, rising of production cost of different manufacturers including the high cost of raw materials, the high demands for goods and services. The causes of inflation may vary from different countries. I think the most contributor in inflation is the pandemic we had faced due to Covid 19 it caused a lot of shortages of goods from other countries. It also result in downgrading manpower and cutting costs.
hero member
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Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline

It's because the whole world became so connected and most big corporations have a global supply chain. The manufacturing and production of most goods happens in different countries then where the products are being sold. And between all those countries you have a huge logistic industry that relies heavily on cheap fuel and energy. Let's say a company buys cheap material around the world that will be shipped to country A for production and then shipped to country B to be sold. If now food prices rise globally, the workers in country A will ask for a higher salary which will lead to higher cost for the product. On top of that are fuel prices rising and making the transport more expensive. This means that in country B not only fuel and food prices are rising, but also all the products produces in country A. So the salaries in countries B have to rise even higher. It's a spiral that keep spinning globally and it's hard to stop.
hero member
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Because of a couple of reasons.

For one, the Dollar which is the global standard currency is failing. Mainly due to the fact that they abused the fact that they aren't backed by gold anymore by printing more money than they can handle during the height of the pandemic. Which I see as a way to help julpstwrtbthe economy and help the Americans get by during a time of great need but it's coming back to bite them in their asses.

Another reason is the fact that we are in a global crisis. Wars left and right, economic and housing collapses left and right because of the pandemic and uncontrollable greed by tycoons and corporations, among many others. Every transgression made against the average joe is coming back to bite the people in their asses basically. The problem only being the fact that it also would affect us because well we use money for everything.
hero member
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Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline
The answer to your query is very straightforward, Out of 195 countries 65 countries are using US dollars as the national reserves. (it could be more). The point is, Devaluation of the US dollar will cause to decrease in the value of national reserves as well and they will bleed with the US dollar. As it is happening right now.

People in my country are earning in PKR and their wages were incremented from 25k per month to 30k pkr (lower wages for labor). While the overall international market is earning more but the prices are almost the same. Which increases inflation. The financial system of all over the world is broken because big investors (4%-5% of the overall population) are controlling them.

Banks are making it easy for people to borrow more money and more money in the hands of people causes more demand of supplies which increases the prices (inflation) plus to meet the gap banks increase the interest on the loans which in return effects the overall economy in the long run if proper practices were not adopted (by the government) which results in bankruptcy of Banking system and USA dollar will start to bleed and other 65 countries will also bleed with them.
sr. member
Activity: 588
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The world is a global village and different nations inside it depends on the goods and services of each other to survive. Therefore inflation in one nation will somehow spill into the nation that they supply goods or services to. In turn the supplied nation will also have something to transaction with another country. So the oil that touches one finger will find it's way to affect other fingers.

Like some members have commented here, any global disaster will somehow affect the economies of all the nations. An example is the covid19 pandemic.
hero member
Activity: 3066
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The amount of money in circulation continues to increase will cause inflation in a country, this will have an impact on prices which will also continue to rise. If the amount of money in circulation doubles, prices will also double. An increase in the amount of money in circulation can occur, for example, if the government uses a deficit budget system.
Not just that, the other factor is an increase in oil prices. Everything that we consume is being transported and these vehicles are required to have oil or petrol for their transport.
And that affects the commodities and goods to have higher prices so, with these situations that we're having, it takes a lot of effort for a government to take down these price hikes.
But I know that there are counties that manages to lessen the inflation rate that they're taking and that's also because of good governance and how they're planning well dealing with these unforeseen incidents related to economy.
full member
Activity: 1036
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The amount of money in circulation continues to increase will cause inflation in a country, this will have an impact on prices which will also continue to rise. If the amount of money in circulation doubles, prices will also double. An increase in the amount of money in circulation can occur, for example, if the government uses a deficit budget system.
legendary
Activity: 2240
Merit: 1131
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There are many factors that increase global inflation, but I think the most important was the energy crisis. We have experienced a global energy crisis. Energy prices have reached new highs and continue to do so. In this case, we all had to grapple with a common problem, but countries dependent on foreign energy have to grapple with bigger problems. Also, we have all faced problems in the balance of supply and demand. So, because we have common problems, we faced a common problem. In order to solve these problems, we need a common mind that can provide an environment of peace and trust.
hero member
Activity: 1666
Merit: 453
This inflation has been a headache for a long time in all countries around the world, to be honest. Since it cannot be removed from every country, this is where the ability of a leader in each country can be measured as to how he will solve it without affecting the economy of the country.

And as far as I can see, the leaders of each country are doing it in my opinion. Because if not, the number one thing that will affect the goods of the people they are in is the number one thing.
hero member
Activity: 2408
Merit: 584
Inflation is happening all over the world at once is because of the global supply chain shortage during the pandemic, which have led to shortages of goods and services and increased in production costs. Most of the countries are experiencing this kind of inflation, a lot of people are affected due to high cost of foods, recession that leads to unemployment. Thus many people are having a hard time dealing with the inflation, because their budget for their daily needs will be tighter. The people who had been laid off need to find another job to be able to survive.
The biggest problem a country faces when the economy plummets is unemployment which causes further issues among the masses since there is already high inflation, on top of that, people find it difficult to find or stay at their jobs since companies start laying off their staff to cut down expenses and survive in difficult times.

Those who get laid off find it too difficult to get work and earn a livelihood for their families. Such times are too difficult for the citizens, countries with sensible and good governments do everything possible to tackle such issues while in some countries, the government doesn't even care for the lower classes.
legendary
Activity: 2534
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I think because all countries are interconnected, for example a country establishes cooperation with other countries, then the country experiences problems, of course the countries that work with them also experience problems or are affected by these countries because they have worked together both in the export of goods and other things. other.
As we know the US dollar is the main reserve currency around the world, and we know as well that they printed a massive amount of money during the pandemic, this forced foreign governments into a very difficult position if they did not printed more money like the US did then the US will be able to export more products as the US dollar will become weaker, while the opposite will happen to them, however if they printed more of their own currency then they will suffer from high inflation, and due to the effects that we are suffering it is easy to see which one of the options they selected.
hero member
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In economics it is said that if the money supply of a country increases then inflation occurs in that country. There may also be other reasons such as wars and natural disasters. In the current context, the effects of war are almost everywhere. As a result of the war in Russia and Ukraine, the production of goods or agricultural production greatly disrupted. As a result, the demand is high and the productions are comparatively less by this reason major impact fallen in around the world.
sr. member
Activity: 1526
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I think because all countries are interconnected, for example a country establishes cooperation with other countries, then the country experiences problems, of course the countries that work with them also experience problems or are affected by these countries because they have worked together both in the export of goods and other things. other.
sr. member
Activity: 1428
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We must understand that this global economy is like a blockchain chain so that if there is a chain that is disturbed or broken it will have an impact on others, this is certainly natural because the world has good cooperation, and of course other factors are debt and inflation that occurs, if there is Countries that fail to pay debts, this will make difficulties and eventually also have an impact on other countries.
hero member
Activity: 916
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Inflation is happening all over the world at once is because of the global supply chain shortage during the pandemic, which have led to shortages of goods and services and increased in production costs. Most of the countries are experiencing this kind of inflation, a lot of people are affected due to high cost of foods, recession that leads to unemployment. Thus many people are having a hard time dealing with the inflation, because their budget for their daily needs will be tighter. The people who had been laid off need to find another job to be able to survive.
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