Topic: Why is Inflation Happening All Over the World At Once? - page 6. (Read 900 times)

I agree so much with you that the problem behind global inflation that is hitting every country as of their economic policy.
It is very difficult to find a government that thinks on its own without depending on what the other governments are doing to achieve results.
Apart from China and other countries in Europe that could think on their own so many countries in Africa will just copy the exact method of financial policy of another country without knowing how it works in the country. So when such system is faultt in one country, it would therefore be faulty in the other countries that emulated it.

Because the whole world is connected, as the real estate crisis of 2007 showed. It would seem that loans and the USA are a personal matter of the USA. But the whole world has gone into crisis, because if banks go bankrupt, then people lose their jobs, projects and investments stop, strikes begin, and supply disruptions. And this process affects the whole world, because we have all been living in globalization for a long time.

Wow this is some meaningful graphic. Everyone knows and gets to fee on a daily basis that inflation went through the roof, but these graphics help reminding ourselves of how bad it actually is and how costly it will turn out to be for all of us in the long run. When policy makers talk about a "crisis", it implies that these are bad times but bad times must end when the good times will start again. It also has some character of temporariness. In this case inflation will have severe long-term consequences, many of which haven't yet enfolded to their full potential. Demographics come into play, pension funds/insurances are under massive pressure, real estate markets could collapse again in light of rising interest rates and people are not able to refinance their mortgages, more government money needed to cushion social hardships, etc.....

So far we have seen example of Sri Lanka going to default and it has nothing to do with economic crisis in other countries rather it was because of there own domestic problems like taking too much loan from China etc. I can give you another example of my country i.e. Pakistan which is in great economic crisis and this too is because of internal issues. I am of the opinion that internal problems are more threat to your economy then crisis happening in other big countries.

When a large country is hit by inflation, it can cause other countries to be affected because many countries are newly developing or underdeveloped and have not been able to stand alone. They still need support from these big countries so they can be more advanced than before.

But I think other big powers will replace the big powers because as we know, developing countries are starting to free themselves from dependence on big countries. They know that if they don't try to stand up for themselves, they will be affected by inflation and will not be able to survive because the inflation that comes can be bigger than before.

Why does it feel like the global economy is going through a downturn? Maybe due to the inaptitude of leaders and misguided policies! It's outrageous how narrow-minded decisions can have such extensive consequences. Rather than prioritizing the long-term well-being of their economies, leaders are too often focused on short-term gains and political maneuvering.

The worst part is that average citizens suffer the most. Inflation has a greater impact on the poorest, and soaring food prices and low savings rates can lead to significant difficulties. It's high time for leaders to set aside their egos and work for the benefit of their people, before it's too late. And I never trust the government will do that. I will buy bitcoin instead

Basically inflation is influenced by economic conditions and policies in each country, there are sources closest to the relationship that affect one country to another, for example cooperation, export/import and other policies that are bound as cooperation between countries. Interpreting inflation from its true meaning is an increase, which means that goods and money circulation that is not balanced are also a factor in global inflation and are also inseparable from other policies that are closer to influencing it.

To find out more about the factors that cause inflation, there is space that cannot be seen only with the news sources that you share, there must be specific approaches and data to review the main issues and each country usually has a different inflation control formula, and usually when it happens needed a more effective solution to handle it.

Because all these supply chains affect one another. Also it’s usually when one manufacturer is affected, many others are affected also.

In Ukraine they make harnesses for many vehicles. Not just one brand. Hence due to the war, many cars can’t be build just because of one part. And as a result there are less vehicles in many countries so the inflation goes up.

So is there any solution to this problem, or we all slowly will move towards default like Srilanka? There was similar crisis in 2008 but we saw big powers somehow survive that economic crisis. The real issue is big powers will again survive current crisis but it will create more problems in underdeveloped countries and they won't be able to survive.

I think, the COVID-19 virus that spread all over the world is the caused of inflation around the world, because during that pandemic that took over many years and some months in the land, really destroyed some government plan. Many governments spend a huge amount of money to made the COVID-19 drugs available for people to use to prevent them from the virus and to allow organisation to resume operation so that there will be products for people to consume. I believe, this inflation will soon give way in the world because many countries are very ready to adopt Bitcoin to grow their economy that is collapsing in their various countries.

the inflation today is much scarier, people no longer worry about having job security, they are worry about food security all over the place, you would not believe folk are quiting job voluntarily, we were once taught having no job is very poor indicator of economy, but we have never seem the full picture yet.

Inflation or expansion of the monetary base is bad enough but loosening money supply while the actual supply of goods and consumption fell was quite extreme alteration to normal business.   Even now some parts in cars and other products are not still allowing the free flow of production, which elevates prices at all levels of the economy.   Demand for energy has risen and also we have seen supply removed via the problems and war in eastern Europe.  Similarly food and fertilizer has caused actual constriction to supply, all of this has helped alter prices probably long term.   Energy and food are both in demand growth so to get ahead of that again in order that prices reduce is not easy to do.

this sounds really logical, so many countries are really depending on each other, i'd say when a country which become a market for other countries is about to get some crisis which means the spending power of the general masses has greatly reduced, it could be said that gonna also affect the country which supplies commodities, etc to the country and also lower income of such country, it's all connected to each other.

i also believe that this inflation is highly influenced by the aftermath of the covid/pandemic period. it was the event that all humanity had experienced in the past couple of years. and each country has their own way of coping up with the impact of this pandemic. and now, with the russian-ukranian war, it further fuels the struggle of many nations to rise up from their troubles.

Simply because we are talking about irregularities with monetary policies or the way how marketable goods are being managed as they are being sold in the market. Also has something to do with supply and demand wherein there are times capitalists are hoarding to trigger a demand. There are countries who are taking advantage on the exclusivity of a particular market good and this does not exist across countries but even within a single country.
Definitely, and between those ties, some countries are simply taking advantage of stocks which pushes other ties to reflect the higher market price towarda other countries, eventually triggering a domino effect towards other economies.
Not only U.S. Maybe this ideology is because of the currency trading value across different countries such as USD to other fiat? I think that is not the reason. In the first place, marketable goods does not come from a single nation only.

Most likely because the one thing that most of our countries rely on is energy and seeing that the Russia- Ukraine war is still going on this will keep affecting other sectors of industry which means spending more to cushion the rising price of energy...thanks to a limited number of energy/ crude oil suppliers.

I also believe because things aren't done the user way,we are been forced to pay a premium as their are a few goods to go around for everyone, also possible that there is an artificial shortage as suppliers try to milk consumers for extra cash to receive less.

Mostly due to Russo-Ukrainian war I guess. Germany has issues due to increasing energy prices, US has issues because it's spending billions on military support of Ukraine. Turkey's economy was ruined even before the pandemic started. Can't comment on Israel and India I have no idea what's going on there. 

Current era inflation, is a perfect storm. Where a number of environmental, economic and private sector variables align to produce a negative cycle which occurs only once in 50 years? 100 years? 1,000 years? It all depends on how bad things get. Some of the damage is environmental. Elevated cases of earthquakes, flooding and natural disasters destroying crops. With elevated drought also destroying crops.

I think every aspect of current state of affairs is known and reported on by journalists. Its not hard to use a search engine to research, map and blueprint the minutiae of how things are broken. The overwhelming majority appear to not follow news trends. If they follow them, they seem to not remember much of past history. Which makes it difficult for us to recognize most of the main contributing factors. Much less address them.

Ancient rome used a silver coin known as the denarius around 200 BC. Which was known to be an era of high inflation for rome: https://en.wikipedia.org/wiki/Denarius#Debasement_and_evolution They reduced the amount of silver in the denarius over time, which led to inflation. That could represent a good text book case of inflation. As well as an excellent example for how gold and silver standards do not prevent inflation. Apparently we live in a strange world where we can put a man on the moon and achieve technological miracles. But when it comes to solving problems like inflation. Our developmental curve is probably lagging behind where we could like it to be.

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.

What did the importing countries do with the fossil oil and grain they had while the Ukrainian-Russian war was still hot? Because when Covid was going on, almost all activities and work were always stopped and constrained because of this, so there wasn't much work that could be done by everyone around the world when Covid conditions occurred.

This is interesting to discuss further because I don't know much about what the IMF actually did in the past and also now or during the covid period and also when the Ukraine-Russia conflict started because I also believe that the inflation problem also arises from two reasons for this although I don't think that it was deliberately done by the IMF.

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