Why is Inflation Happening All Over the World At Once? - page 3.

Freddie Boyer

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Quote from: odolvlobo on March 06, 2023, 06:13:54 PM

I think the main reason is that most nations followed the U.S. in creating huge amounts of their currencies during the pandemic.

It is felt when the central bank takes other actions to fight inflation through measures such as raising interest rates and reducing the money supply what has happened. This policy has caused an increase in the money supply causing inflation to occur. Good intentions indeed but it takes time to fully manifest in changing economic conditions to stimulate their economy during a pandemic.

Freddie Boyer

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Quote from: Kadal Ijo on May 03, 2023, 01:34:33 AM

Inflation is a common thing in almost all countries, in my opinion this is because countries use paper money that is worthless, it's different if there are countries that use gold and silver so the value of money will continue to follow commodity prices and will never drop like what happened to paper money.

For now inflation is a common phenomenon in various countries, right as OP said one of the main reasons is the increase in demand for goods and services, coupled with the shortage of supply and overprinting of money by the government.

In addition, if you look at inflation, it can also occur due to external factors, such as changes in international commodity prices or exchange rates. For example, if a country is heavily dependent on imports and the value of its currency decreases, it can cause prices to rise, leading to inflation. In addition, political instability or natural disasters can disrupt supply chains and increase the price of goods and services, which contributes to inflation.

While gold and silver can provide a stable store of value, they are not without their own drawbacks and limitations as currencies because they are not the most practical or efficient currency for a modern economy.

thecodebear

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Pandemic + supply problems + very high employment.

Lots of money was printed during the pandemic. Once everything started back up and people started spending money again that naturally leads to higher prices.

Supply problems occurred after the pandemic. There were shipping blockages and also demand slowed down so shipping slowed down then when economy started up again shipping amounts couldn't handle supply. More demand and less supply leads to higher prices. Same thing happened with gas, plus Trump negotiated with middle east oil industry to ship less oil for a couple years so when things started up gas shot up. And then the Russia-Ukraine war happened, affecting gas prices even more. And of course with higher gas prices the cost of shipping goes up even more so prices of everything went even higher.

I don't know about other nations but the US has very high employment past 1-2 years since the pandemic started going away. Because employment is so high that means when companies want to hire they need to pay out more. Wages go up, more spending, higher prices on everything.

All these things built on top of one another to create high and persistent inflation.

usekevin

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Inflation is the common factor in the economy,because it cause at two different reason.If the demand increase above the product supply,it leads to the inflation.So the market create the inflation and make the producers to produce as per the demand was increased.When the product demand was increased,the government itself give the wavier to the manufacturers.So the final product was produced and the supply meet the demand of the economy.The inflation was solved and economy condition became a normal.If the product supply cross the demand ,it also cause the inflation to the economy.It will be solved by increase the money supply to economy.

naira

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Quote from: 19Nov16 on May 03, 2023, 09:37:17 AM

I think the factor that affects inflation can occur simultaneously throughout the world is due to the increasing dependence of a country on other countries, for example oil dependence on other countries will of course have a big impact on the economy, when oil-producing countries raise oil prices, it is certain that inflation will occur in many countries. country even global impact.

Let's take a look at the current impact of inflation which has pushed countries to migrate from dollars to yuan. Didn't the Brics become the pioneers to fix inflation. When the United States experienced inflation, all were affected. Even more so after the pandemic required a country to make full repairs to the country's economy in order to stabilize income again. Dedollarization is still related, which means that foreign countries' trust is no longer concerned with US policy.

19Nov16

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I think the factor that affects inflation can occur simultaneously throughout the world is due to the increasing dependence of a country on other countries, for example oil dependence on other countries will of course have a big impact on the economy, when oil-producing countries raise oil prices, it is certain that inflation will occur in many countries. country even global impact.

Pierre 2

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I think main thing that triggered this inflation waves was obviously covidonomics. Nearly all governments of the world printed money out of thin air to pay wages for working people that didn't work. Obvious. But also, there is huge supply crisis going on right now. Even with containers. Global trade isn't as cheap as before. Production costs were increased. Chip crisis is bonus over top of it. I think only thing to do is to pull money from markets. Some countries raise interests do it but that can cause another issues. Hard to tell for me.

Kadal Ijo

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Inflation is a common thing in almost all countries, in my opinion this is because countries use paper money that is worthless, it's different if there are countries that use gold and silver so the value of money will continue to follow commodity prices and will never drop like what happened to paper money.

dansus021

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as far that I know Inflation is always happening the rate somewhere around 1-2% per year.

But at the past year inflation is out of control or above government wants and why is happening all over the wold at once I think because the domino effect

- Covid 19 I think the first problem of high inflation, the first 21st century pandemic.
- War russia and ukraine russia like it or not is biggest supplier of oil and gas while the ukraine is one of the biggest exporter of wheat
- and government decision itself against the inflation

and so many things wold is still at recovery phase but the problem keep coming hahaha

dezoel

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Instead of 7-10%+ range, we are back to 4-7 range nowadays and I am sure that in another year by 2024 we are going to have a 2-4% range once again like the old days. Which means that high inflation already happened and that's over, we are getting better, the prices do not drop, it went up and stayed there, but now we have a chance to fix our income to match that.

At first when the high level of inflation happened, that was hard to handle because our income was small compared to that, but now that everything is getting back to normal, if you get like 10-15% salary increase whereas the inflation is 4% then you actually get more money, it was more like 10% salary increase but 15% inflation so you lost. I think in a few years we will all be doing a lot better thanks to this.

Dalib

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Quote from: Silberman on April 30, 2023, 01:09:21 PM

Quote from: Fesatmas on April 28, 2023, 10:09:16 AM

Quote from: bettercrypto on April 24, 2023, 01:53:08 PM

Almost all countries around the world are facing inflation problems. It just depends on the skill of a leader as to how he will find a way to control the price in the market from basic commodities and others.

Every country cannot avoid it either. that is why the rate of each country's currency is different because of the inflation they face.
So if the leader of a country is careless, for sure the value of their currency will fall.

There are so many factors why inflation occurs, so it's not just the fault of the leaders who are careless or the negligence of the leaders, everything that is happening like what we are feeling today is because of the covid pandemic, all governments allocate state budgets for development and others pile on solving one problem namely covid and apparently most governments couldn't solve it with the amount of money they had at the time so they were forced to print more money to deal with it. the circulation of goods became scarce because production activities were not running which prevented money from circulating as it should be in the normal cycle but only focusing on a few needs, this also pushed up inflation.
Today there are still many governments suppressing inflation in their respective countries, including the US, which is said to be in a position to fight their very high inflation.

Governments are trying to mix the definitions so people do not blame them for what is obviously their fault, when the price of a set of products goes up there could be many reasons why this is the case, like scarcity of the product, delays on the production or the delivery, a sudden increase on the demand and so on, but those effects are temporary, inflation is an increase on the money supply and its effects are permanent as governments never make an effort to decrease the money supply once they have increase it.

I completely agree with this statement. Inflation is often falsely attributed to temporary market conditions or external factors, when in reality it is caused by an increase in the money supply by governments or central banks. This is a form of financial manipulation that can have far-reaching consequences for everyday citizens and the economy as a whole.

When governments increase the money supply, it devalues the currency, which can lead to rising prices for goods and services. This erodes the purchasing power of people's savings and can hurt low-income individuals the most as they struggle to afford basic necessities.

Governments and central banks may use inflation as a tool to stimulate the economy or pay off debts, but it comes at a cost. It can lead to economic instability and even hyperinflation in extreme cases.

Silberman

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Quote from: Fesatmas on April 28, 2023, 10:09:16 AM

Quote from: bettercrypto on April 24, 2023, 01:53:08 PM

Almost all countries around the world are facing inflation problems. It just depends on the skill of a leader as to how he will find a way to control the price in the market from basic commodities and others.

Every country cannot avoid it either. that is why the rate of each country's currency is different because of the inflation they face.
So if the leader of a country is careless, for sure the value of their currency will fall.

There are so many factors why inflation occurs, so it's not just the fault of the leaders who are careless or the negligence of the leaders, everything that is happening like what we are feeling today is because of the covid pandemic, all governments allocate state budgets for development and others pile on solving one problem namely covid and apparently most governments couldn't solve it with the amount of money they had at the time so they were forced to print more money to deal with it. the circulation of goods became scarce because production activities were not running which prevented money from circulating as it should be in the normal cycle but only focusing on a few needs, this also pushed up inflation.
Today there are still many governments suppressing inflation in their respective countries, including the US, which is said to be in a position to fight their very high inflation.

Governments are trying to mix the definitions so people do not blame them for what is obviously their fault, when the price of a set of products goes up there could be many reasons why this is the case, like scarcity of the product, delays on the production or the delivery, a sudden increase on the demand and so on, but those effects are temporary, inflation is an increase on the money supply and its effects are permanent as governments never make an effort to decrease the money supply once they have increase it.

EarnOnVictor

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Quote from: bitmover on March 06, 2023, 01:25:31 PM

The main reason are the economic policies most countries around the world adopted.
The idea was basically to increase spending (and money printing) during lockdowns so they could avoid a recession. So they did, and now the bill is coming.
More money in circulation = more inflation

It's not today that money has been printed and it's not all countries of the world that are printing money at the same time, this proves that the reason for global inflation is beyond this, it is a global issue. The US, for example, had printed money in the past and did not trigger hyperinflation since there are measures.

And yes, policies and careless decisions cause inflation, still, it's not all the time that this is happening in countries and still does not trigger global inflation in most cases.

As for me, what causes this present global inflation is too much dependence of some countries on other countries for goods and services and the war between Russia and Ukraine. In such a setup, when something goes wrong in those contributory countries, it has a chain reaction in the dependent countries as we see it now.

Mind you, no policy is perfect and there are always good reasons for them. And the policies that worked this time might boomerang without much reason for it at times, nonetheless, the effects stay in the country most times, not what we experience globally now.

Fesatmas

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Quote from: bettercrypto on April 24, 2023, 01:53:08 PM

Almost all countries around the world are facing inflation problems. It just depends on the skill of a leader as to how he will find a way to control the price in the market from basic commodities and others.

Every country cannot avoid it either. that is why the rate of each country's currency is different because of the inflation they face.
So if the leader of a country is careless, for sure the value of their currency will fall.

There are so many factors why inflation occurs, so it's not just the fault of the leaders who are careless or the negligence of the leaders, everything that is happening like what we are feeling today is because of the covid pandemic, all governments allocate state budgets for development and others pile on solving one problem namely covid and apparently most governments couldn't solve it with the amount of money they had at the time so they were forced to print more money to deal with it. the circulation of goods became scarce because production activities were not running which prevented money from circulating as it should be in the normal cycle but only focusing on a few needs, this also pushed up inflation.
Today there are still many governments suppressing inflation in their respective countries, including the US, which is said to be in a position to fight their very high inflation.

BRINIRHA

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Quote from: South Park on March 15, 2023, 03:39:16 PM

Quote from: Sithara007 on March 08, 2023, 01:10:28 AM

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

While printing money does cause inflation, it is not until that money begins to circulate when you begin to feel its effects, during the first world war Germany printed a lot of money and yet the inflation was very low, this was because the German citizens afraid of what it was to come saved every single penny and did not spent it, but once Germany lost the war and all of them wanted to use their savings to buy the small basket of products available inflation went sky high, so my suspicion is that a great deal of the money printed by the governments went to the stock market.

Maybe one of them caused it. nowadays even the awareness to save and invest seems to be getting higher. so that a lot of flow of funds goes into the realm of investment, be it crypto or stocks. but the one that has the highest increase is the crypto realm. Inflation is currently under control because the government itself has found the right solution to handle it. such as raising interest rates that make people deposit more money in the bank to earn interest. And some invest in property and other things. So that inflation began to be under control. but the current global concern about the issue of recession. it's just that it seems that it can happen when people start to save extremely. so that the velocity of money continues to decrease over a long period of time. And now the indications of this are starting to show. inflation is almost under control. and a Recession could then emerge. and to overcome this I think that soon the bank interest rate will be lowered.

Gyfts

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Quote from: Hydrogen on March 06, 2023, 06:37:29 PM

If you were the architect of a system designed to reduce risk of inflation in the future. How would you approach it? If 1 ounce of prevention is worth 1 pound of cure. Then prevention might be a goal worth pursuing. But somehow we have not seen much supply or demand of that type of mentality in the 2,000+ years of inflation wreaking havoc with the world's economies.

Reverting back to a standard where currency actually was representative of something tangible would be sufficient. Seeing as all the global inflation is due to COVID related money printing, you would only need a system that disallowed you to generate new currency units.

Bitcoin is the only solution that actually works in a modern era. If currency was based on tangible assets, the protocol could be shifted away from that standard at any time. Bitcoin doesn't have this issue because we're forced to obey the protocol.

Silberman

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Quote from: Unbunplease on April 26, 2023, 07:29:44 PM

Since the world economy is interconnected, and there is no longer such a thing as everything needed being produced in one country, inflation in one country has an indirect effect on the economies of neighboring countries - and further down the chain. The problem is that it is still difficult to find measures to effectively reduce inflation

Unfortunately there is not much that can be done as inflation is just a symptom and not the real disease, the real problem is that governments and banks keep printing money for no reason at all, abusing the power they were giving by their citizens, this is like someone having an infection on their body and as a consequence their body temperature goes up, treating the increase on the temperature could be important but it does not resolve the cause of the problem at all.

Unbunplease

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Since the world economy is interconnected, and there is no longer such a thing as everything needed being produced in one country, inflation in one country has an indirect effect on the economies of neighboring countries - and further down the chain. The problem is that it is still difficult to find measures to effectively reduce inflation

bhadz

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In my mind, I've been thinking who invented this inflation because it sucks. It's not just sucking my life but entirely everyone's life and all of us do suffer from all of these increased prices of commodities and services that we use. Whilst our salary remains stubborn and don't have an increase that's enough to cover these inflation rates.

When everyone is aware that there are only two permanent things in this world which are death and taxes. Make it three and include inflation.

mindrust

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It is happening because of the lockdowns that happened in 2020 and 2021. The whole world economy stopped for many months. People didn't go to work and the governments handed them out free money. The central banks all around the world printed billions and billions of their local currency. You don't have to be a rocket scientist to see why is that happening. People that are governing us, people who are supposed to be smart, they all fucked up pretty bad... or.... this was all intentional. Which one you believe? Do you think they are stupid?

Topic: Why is Inflation Happening All Over the World At Once? - page 3. (Read 900 times)