Topic: Why is Inflation Happening All Over the World At Once? - page 7. (Read 953 times)
Because today countries are much more tied to each other through trade than they were in the past. If one major country is in the crisis, it can't buy as much goods from other countries, so they enter a crisis too. Plus we're still living in post-covid times, and all governments responded to covid by increasing spending, which is one of the biggest causes of inflation.
Economies of countries are interconnected: one country experiences inflation, for sure its exports will be higher, and the receiving country who buys their exports will have to higher prices that they have to pass on to the consumers. It's a domino effect, and all of these happens on the daily. If it doesn't, then you won't be seeing a lot of these countries experience economic hardships at the same time. The only differentiating factor is how well these countries can cushion the blow. While they may all be experiencing inflation all the same, some countries can easily handle it while others do not.
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
- Major fears are sweeping into Israel’s economy
- Stubborn inflation will remain at a very high level, German central bank president says
- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy
- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says
- Inflation resurges to 21.82 % over rising food prices
- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery
- Major fears are sweeping into Israel’s economy
- Stubborn inflation will remain at a very high level, German central bank president says
- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy
- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says
- Inflation resurges to 21.82 % over rising food prices
- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery
This. Is. Globalization.
An economic crisis is no exception to the ramifications of a globalized economy. The more globalized the world is, the more every country is inter-twined financially. The more each country relies on one another, the more intertwined they become financially. In my opinion, I believe that the banks and the money that the banking system created unnaturally is what not only accelerated globalization, but the economic catastrophe to come.
The world's currency reserve was printed in Trillions. It would affect every currency since they are all trading in USD. Purchasing power of the USD falls, and all other currencies also fall. Every other country is relying on what the US does.
When gas price skyrockets in USD, all other prices go up as well since the production cost increases including the freight. Even when it's just within the US, the prices will have a big difference from state to state.
Pandemic? Why is it so shocking that the pandemic was a global thing and caused a lot of nations to print money which of course triggers inflation. Thats a normal thing and I feel like we are going to end up with such a normal thing for a long period of time. I am not saying that this is going to end up with anything good or bad, maybe it could trigger growth, maybe it won't. All in all inflation is a bad thing, but we are already getting it under control, its too late to open this topic, the recession that follows each inflation is already on its way right now and we will deal with that for a few years as well.
I also see it from a different perspective. Inflation occurs because the IMF family provides financial assistance to countries that request assistance for stimulus. As a result of covid. Then the IMF family creates a Ukrainian-Russian war (thus fossil oil and wheat) steps across all importing countries.And the effects of money printing by the IMF and the Ukraine-Russia conflict have begun to appear, which were deliberately created by the IMF family. When a secular economy is used throughout the world, this is how inflation happens all at once throughout the world.
Inflation in one country will affect others that have beneficial relationships with these countries and in like a chain reaction the effect will be transferred to other countries that benefit from these countries. Inflation can be caused by many reasons, and crisis can result to inflation. When many major players in the world economy are experiencing one form of crisis, It can result in leading to inflation that will be experience by the many countries that are dependent on them for one thing or another.
Dependency of each other to another and blame the fed for the high inflation that we're all having. Remember the brrrrrr money printing that they've made and other countries did as well during the height of pandemic.
I am not an expert on this but I think also their adjustment of interest rates also contributes to the inflation and it all depends to what they think they should done to stimulate or control it.
Combination of many factors, the war, opec controlling oil supplies, food shortage, etc and all of those do contribute to inflation of each country.
I am not an expert on this but I think also their adjustment of interest rates also contributes to the inflation and it all depends to what they think they should done to stimulate or control it.
Combination of many factors, the war, opec controlling oil supplies, food shortage, etc and all of those do contribute to inflation of each country.
We live in the global economy. Everything and everyone is linked. So the crisis in one place affect the rest of the world. Butterfly effect.
Pandemic? Why is it so shocking that the pandemic was a global thing and caused a lot of nations to print money which of course triggers inflation. Thats a normal thing and I feel like we are going to end up with such a normal thing for a long period of time. I am not saying that this is going to end up with anything good or bad, maybe it could trigger growth, maybe it won't. All in all inflation is a bad thing, but we are already getting it under control, its too late to open this topic, the recession that follows each inflation is already on its way right now and we will deal with that for a few years as well.
Inflation has been in place for long but there are factors that do make the effect to comes out bold, one of it is a bad economy activities runnings which might have been as a result of natural occurrences, poor market as a result of decrease in demand and decrease in supply, weather, middlemen and many more activities, this call for a set of programs that could help fight against the consequences that may come through them when in a prolonged situations.
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
https://www.reddit.com/r/CryptoCurrency/comments/kdpc24/35_of_all_us_dollars_in_existence_have_been/
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
https://www.reddit.com/r/CryptoCurrency/comments/kdpc24/35_of_all_us_dollars_in_existence_have_been/
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
- Major fears are sweeping into Israel’s economy
- Stubborn inflation will remain at a very high level, German central bank president says
- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy
- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says
- Inflation resurges to 21.82 % over rising food prices
- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery
- Major fears are sweeping into Israel’s economy
- Stubborn inflation will remain at a very high level, German central bank president says
- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy
- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says
- Inflation resurges to 21.82 % over rising food prices
- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery
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