Why is Inflation Happening All Over the World At Once?

[Davidvictorson]

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

[bitmover]

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/

[Aanuoluwatofunmi]

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.

[Captain Corporate]

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.

[1SamuelTom]

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.

[livingfree]

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.

[Bananington]

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.

[zaki12]

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.

[cabron]

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.

[BenCodie]

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

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.

[dothebeats]

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.

[hatshepsut93]

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.

[odolvlobo]

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

[Davian144]

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.

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.

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.

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.

[Hydrogen]

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.

[serveria.com]

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

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. 

[Woodie]

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.

[Yatsan]

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.

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.

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.

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

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.

[AmoreJaz]

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.

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.

[bitkanu]

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.

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.