Why is Inflation Happening All Over the World At Once?

[STT]

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.

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[Broly46]

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.

[Sebas.tian]

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.

[WatChe]

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

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.

[adaseb]

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.

[ancafe]

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

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.

[slapper]

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

[michellee]

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

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.

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.

[WatChe]

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.

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.

[tiCeR]

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/

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.....

[summonerrk]

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.

[KingsDen]

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/

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.

[Dickiy]

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

Yep, that's absolutely true, if you look at it historically, a lot of new money has been created to deal with the Covid-19 pandemic, such as buying anti-viral clothing, medicine, vaccines and providing free assistance to the community, in terms of polarization it is indeed the same in this case, and this was accompanied by economic congestion due to restrictions on economic movement to stop the spread of the virus, and then continued by the Ukrainian and Russian wars, I think this is still relevant for most western countries.
In my country, the main cause of inflation is printing too much money and distributing it to the public for free.

[ivankoh]

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/

Couldn't be better with this reason!

Inflation is dominating the global economy, in fact there are many reasons leading to high inflation and I agree that the high level of money printing abuse is a good reason that it has accompanied every year,  The energy and food market scenario is just a revelation and a seasoning for money printing to become serious, increasing global inflation.  That caused a slowdown in the economy.

[Flexystar]

Why would not it affect all of them at once? The whole world depends on each other. Whether it is internet cable running under water to grain getting exported and imported from one country to other, everything is connected and will affect each other now and then. When it comes to the inflation it is but obvious that one country will raise the costs and thus depending on that the receiving country would have to update the costs in their country as well. This applies to almost every country because now and then some country is connected to other with multiple trade and investment strategies.

Developed nations always comes first in line because they hold most of the important powers in their hands and then slowly the chain reaction happens throughout developing and under developed nations. Though the time is pretty same, the reverse recovery is also true and happens in the same manner.

[lixer]

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

It's not only about how bad or good their leaders are because why the problem happens in all countries and not just on the countries that has a bad leaders? An economic downturn might only be a natural problem. It could not be 100% avoided but there are measures that can do in order to survive it.

For inflations, I know that Bitcoin is one of the best solutions for this. There are some leaders who are not patient enough and they focus on the short-term ideas first but I think once they proved that it wasn't really beneficial, that would be the time that they will change their approach and try long-term plans this time. We should be calm and wait for it.

[Merit.s]

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?

Covid-19 pandemic was globally and there was lock down,which lead to lack of production and depreciation of economy world wide. People were only feeding from what they had and so many people  lost their jobs, the government was caring for its citizens which lead to the idea of printing money by the government, thinking that it will be a solution to the problem,without having the knowledge that printing money will increase  inflation. Secondly,the ongoing war between Russia and Ukraine is eaten up the economy and causing inflation. If you think that you are not part of the war, but you are partaking in the hardship that the war is causing. This is hitting hard on the third world country who have corrupt leaders and whose citizens can't fight for their right

[South Park]

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

This is happening because the US decided to print a lot of dollars in a very small amount of time, most countries have their reserves on US dollars, so the moment the US did that they lost a great deal of their savings and they became victims as well, not only that, such move weakened the US dollar and gave it a competitive advantage over other currencies which meant more exports and less imports for the US, so those countries faced a choice, to accept this or to inflate their currencies as well in order to combat those effects, and you should know what path they took.

[Dragonfund]

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.

The whole inflation emernated from the effect of Covid19 and till today, that is what we are still fighting even if we don't see the disease around. During that time, there were lots of zero Jobs, no food, no proper medications and all lock down, what do we expect after all that, it will definitely be economic lapses and any country who is not strong will suffer the cause after that, look at it today, US is also feeling the heat and my West African countries who are inexperience are all crying of the same inflation, no country is left out from this inflation and shortage of food supply.

[Smartprofit]

Humanity has colonized the entire planet Earth.  This led to the fact that the whole world became one.  This is called globalization.  

Meanwhile, this was not always the case.  

For example, in 1933 there was the Great Depression in the USA, the closure of factories and industries, mass unemployment.  In the USSR at the same time there was an economic boom.  The five-year plan for the development of the country was successfully implemented (moreover, the plan was completed ahead of schedule - in three years).  

The modern world economy is based on a deflationary US dollar and interest on loans.

Under these conditions, high world inflation is inevitable.