Why is Inflation Happening All Over the World At Once?

[South Park]

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.

[STT]

More precisely producing more money in circulation is the inflation, its in existance at that point of production.   However the system we use to measure inflation only notes inflation apparent when its registered via higher prices on the high street, it filters down from the QE bonds of very large amounts eventually into the smallest transaction sizes.     Some of the inflation of the last 20 or 30 years will not appear until pension funds have cycled as one of the largest buyers of QE bonds are other government departments who represent millions of people with no choice in the matter.
  When people retire and rely on that value to be there in their pensions, it will much harder to find unless growth exceeds inflation.  It will be decades before the full picture is known and those in politics who allowed the excess debt to be put into issuance for their various schemes will be long out of office and probably dead.    Its far easier to create inflation via debt then justify to a population why you are now more obviously and increasingly taxing them in direct greater amounts.

[Vishnu.Reang]

I am looking from different prospective inflation is rising levels higher than we've seen in decades, for reasons largely related to spending practices and other factors of the pandemic, as well as Russia's invasion of Ukraine. Inflation can be reduced by making people understand about investing money, potential for long term returns. While cash is undoubtedly safer than shares, it's unlikely to grow much as money losses its value over time. 

[Silberman]

I am looking from different prospective inflation is rising levels higher than we've seen in decades, for reasons largely related to spending practices and other factors of the pandemic, as well as Russia's invasion of Ukraine. Inflation can be reduced by making people understand about investing money, potential for long term returns. While cash is undoubtedly safer than shares, it's unlikely to grow much as money losses its value over time. 

Inflation comes from an increase on the money supply and this happens because the governments and banks print too much money, the participation of the average person in this process is minimal, the governments are the ones that should learn how to live with as little as possible and stop creating more bureaucrats for every single problem they have to face, however this is never going to happen until the fiat system collapses and they have no other option but to become way smaller than what they are right now.

[bettercrypto]

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.

[YUriy1991]

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/

Yes, a hot issue and most frequently discussed. Inflation is a complex economic phenomenon that can be influenced by a variety of factors in my opinion. There is some truth as you convey. Economic policies implemented by countries during the pandemic such as increasing spending and printing more money to avoid recession have contributed to inflation. However, that is not the only cause of inflation and other factors such as supply chain disruptions, increased demand for goods and services, and rising commodity prices also played a role. My view, Inflation is a complex phenomenon that is influenced by many factors, and it is important to consider all of them when trying to understand its causes.

[Casdinyard]

Could attribute it as an aftereffect of the overprinting most countries did during the height of the pandemic. Most countries during those times are eager to help their citizens cope so loans, stipends, allowances, and cash grants (most famous of which are the stimulus checks) are what countries employed to help people have something to spend and still enable the economy by encouraging people to purchase despite the lack of business movement. Since thingns are settling down and the establishments have once again opened their doors to the public, the effects of the overprinting kicked in which lead to the apparent inflation rate increase across the planet. This is not to think that these governments and authorities all banded up to devise a plan to make their currencies even more useless, just a normal course of things.

[Ozero]

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

Inflation affects most states at the same time, primarily because strong economic ties have developed between them due to the fact that not a single modern state is able to fully ensure the production of all the necessary goods and products for the normal existence and development of its economy. Therefore, a certain specialization has developed in the world depending on climate, soil, natural resources, concentration of production capacities, and so on. Failure in one part of this specialization automatically causes failures in related production and supply. Well, significant cataclysms and phenomena such as the coronavirus pandemic generally hit the economies of many states at once. All this leads to world inflation after some time.

[Twentyonepaylots]

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

Inflation affects most states at the same time, primarily because strong economic ties have developed between them due to the fact that not a single modern state is able to fully ensure the production of all the necessary goods and products for the normal existence and development of its economy. Therefore, a certain specialization has developed in the world depending on climate, soil, natural resources, concentration of production capacities, and so on. Failure in one part of this specialization automatically causes failures in related production and supply. Well, significant cataclysms and phenomena such as the coronavirus pandemic generally hit the economies of many states at once. All this leads to world inflation after some time.

I agree since countries do have financial links in terms of trade and commerce and this would result to an effect to the overall economy of one to other since the specific economic factors that driven the rise of inflation in one country could have a domino effect on the economy of the others. Also, we can never deny that all countries are hit by the pandemic and some economies were hit hard causing some economic issues that is still felt up to this day. It may seem that pandemic is over, but we can still expect to see its effect on each country's economy and how would affect others.

[BRINIRHA]

Isn't the reason very clear. That is, everything really started from the Pandemic that hit almost all countries in this part of the world. Many countries have printed a lot of money during the pandemic and distributed it to the public as aid. and so that people can still shop even though at that time several areas were quarantined. Because if this step is not taken, it is precisely during the pandemic that economic paralysis can occur due to the flow of money which may be hampered due to quarantine. but because the steps to printing money were indeed effective in avoiding the paralysis of economic flows in that country at that time. but the real problem happened after that, when the pandemic ended. Too much money in circulation will make the value of money decrease slightly and cause a sizeable increase in prices (inflation). and after that the central bank simultaneously raised interest rates to slowly withdraw excess money circulation so that inflation was again under control. and this is happening all over the country. so it is not surprising that all countries experience inflation. The second factor is due to war and natural disasters.

[bbigtart]

Because We live in a global economy where all countries are connected to each other. Inflation in one country can affect other countries in various ways. For example, if a country experiences high inflation, the prices of goods and services imported from that country may become more expensive for other countries that buy them. This can cause inflation in these countries if they are forced to increase the prices of their products to offset higher costs.

In addition, crises in major countries such as the US, China or the European Union can impact other countries with which they have close economic ties. This crisis can cause their currency to depreciate, and this can cause imported goods to become more expensive. In such a situation, these countries may have to spend more money to pay for their imports, which in turn can fuel inflation. Another assumption is that inflation can also be caused by internal factors, such as increased domestic demand and increased production costs. because inflation is not always caused by crises or external factors. However, external factors such as the economic crisis can exacerbate the inflation situation and result in a wider and more serious impact on the global economy.

[jaberwock]

Inflation affects most states at the same time, primarily because strong economic ties have developed between them due to the fact that not a single modern state is able to fully ensure the production of all the necessary goods and products for the normal existence and development of its economy. Therefore, a certain specialization has developed in the world depending on climate, soil, natural resources, concentration of production capacities, and so on. Failure in one part of this specialization automatically causes failures in related production and supply. Well, significant cataclysms and phenomena such as the coronavirus pandemic generally hit the economies of many states at once. All this leads to world inflation after some time.

I agree since countries do have financial links in terms of trade and commerce and this would result to an effect to the overall economy of one to other since the specific economic factors that driven the rise of inflation in one country could have a domino effect on the economy of the others. Also, we can never deny that all countries are hit by the pandemic and some economies were hit hard causing some economic issues that is still felt up to this day. It may seem that pandemic is over, but we can still expect to see its effect on each country's economy and how would affect others.

I think as much as it is domino affect, there is also the reason that whatever caused the inflation in one nation, probably caused it in the other as well. Like for example the pandemic was the start of it, and it wasn't just in one nation, it was all over the world and every government had the same reaction to it, which was printing more money.

There was no money in peoples pockets and in order to keep everyone at home they needed to give them some money to keep them staying at home, and that is why I believe that most of them just printed money and gave it to people so they could not work, stay at home, and still survive as well. This resulted with every nation to have a higher inflation, even though it was domino to each other, it was terrible individually for them as well.

[mindrust]

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?

[bhadz]

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.

[Unbunplease]

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

[Silberman]

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.

[Gyfts]

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.

[BRINIRHA]

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.

[Fesatmas]

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.

[EarnOnVictor]

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.