Off Economic phenomenon.

[BIT-BENDER]

I would believe we are from the same country because same situation you talked about are what my country face right now. The Naira which is the Local currency of my country was really fall compared to naira and was heading towards ₦2000 for $1 which is super crazy causing the price of goods and services to sky rocket leading to hardship in the country.
This situation is as a result of bad government with not strategy to handle the nation economy, to make matter worse the country decided to target Binance seeing it as the cause of the Naira Falling.

I think the situation is bad even if we are now seeing temporary progress in the value of Naira but not reflecting in the price of goods and services.

[Frankolala]

The government is not doing the right thing. Instead of thinking how to tackle inflation by repairing the refineries, and focus more on production in the country to lessen the right of inflation, they put the blame on the value of dollar over Naira. This has shown that they are not competent of the offices that they are handling.

The government should focus more on production and exportation, rather than importing almost everything that is used in the country. I believe the the Naira value would be in a short-term, because nothing is done to tackle the high level of inflation by the government.

[Faisal2202]

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved? 

I did not realize the situation in Nigeria is that bad, I read an article --> Why Nigeria's economy is in such a mess After reading the article I got some idea that you are oil making nation when I read it, I got only one question, why a nation which is the 2nd largest oil generating in the whole Africa is suffering. According to some statistics, your exports have improved in comparison to previous years.

With that saying, why money is not being made, would be due to many problems, like low-level education, people with no risk taking, money making, optimistic mindsets, but if the situations are bad then these are not going to be the ones that lack, the only thing that lacks is leadership and opportunities, they are giving to you, if not then you guys have to be independent of the government, learn new skills, join technology, provide services and start to earn money in $. Our country's situation is also very bad, the prices of everything have gone 2x to 3x in a few years. We have a hell lot of $ as debt on us. last time we were near to declared as default. We have riots among the political leader and they only work for money.

Things are difficult and in this situation many Pakistanis are flying abroad, earning in dollars and helping others too, some are becoming entrepreneurs and producing more employments, people are helping each other, this can solve some things. Overall, who is at fault, that's hard to know.

[Fortify]

Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

My country has been battling with the dollar exchange rates. It's been soaring high, making the prices of food and other commodities soar high as well. But recently, the exchange rates dropped by over 37%, and everyone became happy ( of course apart from those who earned in $), and the prices of goods and services even went higher, further decreasing the standard of living in the country.

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved? 

At the end of the day, US economic policy will take into consideration all the external countries that rely on the dollar for trade (to keep it as the global reserve currency) but they first have a commitment to making the lives of American's better. That is why countries that rely on the dollar, often through unofficial or black market trade, will feel consequences from the US central bank. The one thing that is going on right now - investors are always looking to find decent returns without too much risk, for the low volatility part of their portfolio, and times have never been better to get that low risk debt from US government bonds paying close to 5%. If you imagine before the recent global inflation problems it was sub 2%, you can see why investors are piling in there and out of other less stable countries

[Coyster]

What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved? 

Inflation is a global issue right now, though the situation is worse in some countries than others. Nigeria has quite a lot of problems with debt, lack of local production/exports, mismanagement of public funds/taxpayers money and really bad economic policies, and the government are only chasing temporary reprieve to all of these and more.

I don't think inflation can be "resolved" (to use your own words), though the government can take better decision to lower the rate of inflation, and unless they tackle the problem from the root, it would be futile or only produce respite.

[d5000]

My country has been battling with the dollar exchange rates. It's been soaring high, making the prices of food and other commodities soar high as well. But recently, the exchange rates dropped by over 37%, and everyone became happy ( of course apart from those who earned in $), and the prices of goods and services even went higher, further decreasing the standard of living in the country.

[...]What do you think this Economic phenomenon is and what exactly is causing it?

I already read that you are from Nigeria, which is funny because I thought you were from Argentina where something similar happened recently, although only if we consider the "market" exchange rate (both legal and illegal) and not the officially controlled market which is difficult to access for buyers and thus has a lower price.

But as you asked for experiences from other countries: In the case of Argentina, the reasons of a decrease in the "real" USD/ARS exchange rate combined with an increase of the price level were varied but all were related to a government change:

- Before the decrease, price controls were in action. These were lifted by the new gov, giving freedom for companies to increase prices.
- A devaluation happened in late 2023 just before this phenomenon, which created an inflation shock for imported goods. But since then the government has barely touched the "official" exchange rate.
- At the beginning of the new administration there was uncertainty about the path the government would take. This drove USD/ARS "market" exchange rate to the moon, but then after first actions were taken, it fell.
- New government's measures have caused a recession; many people and companies had to sell dollar/forex reserves. This deflated the USD/ARS "market" exchange rate further.
- Inflation "inertia" was (and is) still in place, i.e. speculation about future price and wage increases didn't change.

All of these phenomenons were completely local, but they could happen in any country. The interesting thing in this case however was that these forces were so strong that they even countered a decrease of interest rates, which had risen to astronomical heights in 2023 (over 100%).

How could be "dealt with that"? The idea of the government is that a new equilibrium would be found between inflation, the USD/ARS exchange rate, and interest rates, creating conditions to retake economic growth, allowing basically an already-existing recession to deepen to stop inflation. But the problem is that much of these phenomenons have side-effects: For example, too many companies closing due to recession can lead to an exodus of skilled people and the reduction of economic diversification (need for more imports), which affects growth potential. Measures of this kind aren't "free". They can work, but also can not. To see if Argentina is a good example how to deal with such phenomena we must wait some months (or years) more.

[Lida93]

Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

You may not have to depend on the government as well as stop comparing your country to others, you need to be independent on yourself because the government will not be responsible on how you have seen to economy for your own good, create time to find an alternative for yourself in the economy, don't be too dependent, work on yourself to have value and make effective use of these to your own benefits, things have always been that bad ever, but not being too dependent will make every economic conditions sustainable on you.

It's easier for you to say all of this in paper than in practice under such dilapidation that an economy is experiencing.

How do you as a single individual thrive in a country that group's of private companies and industries are struggling to survive the continuous economic hardship forcing them to close business operations because they could no more meet up with cost of operation. How does a single individual survive it if they the companies are finding it hard to?

How do you as an individual depends on yourself for your own security in a social contract society when those saddled with political system has failed on their responsibility to protect lives and property. How can you as an individual survive under an insecure environment even if you are with entrepreneurial skills that should provide you a sustainable income source?

When the cost of goods getting increasing regularly following with constant devaluation of your country's currency value, how do you depend on yourself to survive under an economy like that if you don't have to depend on the government to solve and bring sustainable developmental solutions to these economic hardships?

Please @dunamisx brief me on practical ways as an individual without depending on the government how you can be dependent on yourself to survive sustainably under such a dwindling economy that's also bedeviled with gross insecurities.

[Pi-network314159]

Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

The reason while other countries are doing better than others  is as a result of some countries not having love amogs themselves. Because love is one important thing in what ever thing we do. When there is love, people leave in peace and harmony and becomes productive. but when there is no love amog people, the country becomes devided. If you check Some best countries to, you will discover that it was oneness and unity that made them become a better country today without minding ethnicity, religious disputes, political crisis and many others. If they can be able to unit and forget about all that, I believe things will be ok.

[TEBTC]

Economic hardship is a global problem but each country problem is unique and different from others countries for instant your country economic situation may be due to lack of production of local goods and services if your country depends entirely on import and don't produce the basics house hold goods for her citizens the currency of that country will suffer in the hand of the dollar you have to produce and and become self sufficient then you export to others countries
Secondly you have to look at the leaders of your country if the economic decisions they are taking is friendly to economic growth or not because there are leaders who doesn't know anything called economy such as African countries leaders in that case the economy will suffer

[Maus0728]

You may not have to depend on the government as well as stop comparing your country to others, you need to be independent on yourself because the government will not be responsible on how you have seen to economy for your own good, create time to find an alternative for yourself in the economy, don't be too dependent, work on yourself to have value and make effective use of these to your own benefits, things have always been that bad ever, but not being too dependent will make every economic conditions sustainable on you.

That's the wrong mindset, we pay our taxes to the government so technically we have a say on what to do with the gathered taxes, which means that it's our right to get what we deserve and that the government is obligated and it's their responsibility to comply to this things that we ask, yes you can't depend all of your needs to them but if they're not looking out for you, there's either something wrong with you and the people around you or the government or both, that's the excuse of many people that don't like the idea of handouts by the government to those that need the money, that they shouldn't be relying on them when that's what the people that controls us wants, that we turn on each other and make it so that they're giving out less help and they can further improve their legacy as a government officials.

[South Park]

If your country's fiat is doing worse against the dollar means the government is printing more money or the paper money is not accepted for exchanges of other currencies or the reasons could be anything but its not in your control to make any changes that can bring positive effect its in the hands of government to make ways that strengthen the economic structure and further progress.

Maybe I didn't ask the questions properly, or  you probably didn't get me. The question is, can you explain this Economic phenomenon and give countries that had such an experience and what was done in order to stop it. It really doesn't matter if I am the one stopping it, or an NGO, or the the government themselves. Simply what was done to stop it ?

Also, this kind of economy makes it difficult for individual to thrive on their own, what advice would you give to people from my country who are still willing to increase their income regardless of the economy?

You did not even told us the name of your country so we cannot asses the whole situation with such little data, however even then it seems you are under the impression that such thing can be easily solved, but this is not possible, economic problems in a country are often the result of decades of mismanagement, and in order to solve those issues decades are needed as well, and that is if we were to assume politicians decided to do things right this time around for such a long period of time, an unlikely possibility without a doubt.

[kryptqnick]

Similar things happened in my country. Overall, the USD is just getting more and more valuable if measured against local fiat. However, sometimes there are temporary spikes which go way too high, and they are promptly followed by corrections. So, for example, from January to the end of February 2015, the USD went from being worth 15.6 UAH to 27.7 UAH. Then it dropped to 20.2 UAH by May of the same year, which is a drop similar to the one described by the op. Over the years, it went higher and lower occasionally, fluctuating between spikes and corrections. Maybe that's what's going on.

[Cryptomultiplier]

I think a change of government and administrative reshuffling can be a contributing phenomenon to the economic situation of a country at any time, because a new government would try to tip the scale in their favour with new policies and systems.
While scrutinizing the former administration, they may create a lag and soonest, attention would be diverted to setting up panels or agencies that would require financing to function while other sectors of the economy will sit
idly waiting on outcomes of court cases and investigations ongoing.

[stompix]

You can’t fix inflation. Nobody can. It is because these central banks are addicted to printing. However, You can protect yourself from it. It is not rocket science…

Japan inflation

Inflation in Japan averaged 0.8% in the ten years!

Japan monetary mass


The monetary base double din the last 10 years and went 6 time sup in the last 20.

Bank can print one hundred quadrillion trillions and flood the amazon with cash, if nobody is using the extra cash to buy stuff but stores them in their accounts there will be no inflation.

Currently, most of the countries are into high inflation and the first world countries are dealing with recession.

Most? No, not even close!

[mindrust]

You can’t fix inflation. Nobody can. It is because these central banks are addicted to printing. However, You can protect yourself from it. It is not rocket science…

Japan inflation

Inflation in Japan averaged 0.8% in the ten years!

Japan monetary mass


The monetary base double din the last 10 years and went 6 time sup in the last 20.
Bank can print one hundred quadrillion trillions and flood the amazon with cash, if nobody is using the extra cash to buy stuff but stores them in their accounts there will be no inflation.

Averaged 0.8% but it is over 2% now. Do you think it will go down from there? Japan is an interesting case indeed though.


https://www.usdebtclock.org/world-debt-clock.html

Take a look at the public debt to gdp ratios. Japan is by far the leader with ~298%, the runner-up is Greece with ~226% and the third place belongs to Italy with ~171%.

As of March 2023, the Japanese public debt is estimated to be approximately 9.2 trillion US Dollars (1.30 quadrillion yen), or 263% of GDP,[1] and is the highest of any developed nation.[2][3][4][5] 43.3% of this debt is held by the Bank of Japan.[6]

This shit is crazy and trust me, you don't want to be Japan.

The aging population of Japan isn't helping either as older people don't buy the newest iphone or toyota very often. They use what they have till it breaks and Toyota's last to the grave  That huge pile of printed paper should bring huge trouble in the future if not today. When it does, it will be all fireworks.

[stompix]

Averaged 0.8% but it is over 2% now. Do you think it will go down from there? Japan is an interesting case indeed though.

Yeah, definitely!
You're forgetting that Japan has tried to fight deflation for decades and that finally seeing positive was a success story!
 

Take a look at the public debt to gdp ratios. Japan is by far the leader with ~298%, the runner-up is Greece with ~226% and the third place belongs to Italy with ~171%.

Nope!
https://tradingeconomics.com/greece/government-debt-to-gdp

Greece recorded a Government Debt to GDP of 160.30 percent of the country's Gross Domestic Product in 2023

https://tradingeconomics.com/italy/government-debt-to-gdp

Italy's public debt decreased to 137.3% of GDP in 2023

I'm pretty sure that website is configured only to go up!
https://ec.europa.eu/eurostat/documents/2995521/17725721/2-23102023-BP-EN.pdf/94083c00-c5e1-fe02-a30f-6f4122e9d744

Also...hihihi, common,

Take a look at the public debt to gdp ratios. Japan is by far the leader with ~298%, the runner-up is Greece with ~226% and the third place belongs to Italy with ~171%.

As of March 2023, the Japanese public debt is estimated to be approximately 9.2 trillion US Dollars (1.30 quadrillion yen), or 263% of GDP,[1] and is the highest of any developed nation.[2][3][4][5] 43.3% of this debt is held by the Bank of Japan.[6]

The aging population of Japan isn't helping either as older people don't buy the newest iphone or toyota very often. They use what they have till it breaks and Toyota's last to the grave  

Exactly my point as I said previously: If people don't spend no matter how much money you print you will have no inflation!

[mindrust]

Yeah, definitely!
You're forgetting that Japan has tried to fight deflation for decades and that finally seeing positive was a success story!
 
https://tradingeconomics.com/greece/government-debt-to-gdp

Greece recorded a Government Debt to GDP of 160.30 percent of the country's Gross Domestic Product in 2023

https://tradingeconomics.com/italy/government-debt-to-gdp

Italy's public debt decreased to 137.3% of GDP in 2023

I'm pretty sure that website is configured only to go up!
https://ec.europa.eu/eurostat/documents/2995521/17725721/2-23102023-BP-EN.pdf/94083c00-c5e1-fe02-a30f-6f4122e9d744

As of March 2023, the Japanese public debt is estimated to be approximately 9.2 trillion US Dollars (1.30 quadrillion yen), or 263% of GDP,[1] and is the highest of any developed nation.[2][3][4][5] 43.3% of this debt is held by the Bank of Japan.[6]

I am aware of the difference between usdebtclock and the wiki article but I thought the wiki article was outdated. It says the info is from March/2023 which is a year old. usdebtclock should be showing the updated info. The difference is only 30% though. I don't think it proves a point here. It is still over 250%. Let's say it dropped to 200% would it change anything about how fucked Japan is? Nope.

Exactly my point as I said previously: If people don't spend no matter how much money you print you will have no inflation!

Which brings a recession and it is equally bad. What you are saying is:

"We can cure this cancer if we kill the patient. No patient, no sickness to cure."

Japan might have no inflation, it is because it is already a dead economy.

Yes we can cure the inflation if we kill the economy. Bravo Doc, you'll get the Nobel prize for this research.

[Churchillvv]

Apart from the fact that you're specific that you did answers from other countries citizens, I'm also from same country and perhaps I totally understand the current economic situation of the nation.

The current economic situation has been very very poor to the extent that it cannot be changed in just a few decisions but has to go through a lot to be normal again. The past governments of the country ruled the nation in a selfish manner that has lead to the high inflation of goods and services in the country and perhaps for it to be corrected it must go through some work which requires time, since the incubate government are working on bringing down the inflation rate the no matter the reduction in dollar rate it's expected that goods and services will go high in the first period of policy changes before it sets to fall for good.

This has lead our incubate president to make some announcements few times ago that they are working of inflation and perhaps the citizens will have to bear with them for some time before the price of goods and services will set to reduce. Thous he gave an example that when a is turn off for the first time it uses the same energy to rotate meanwhile it's off already so it will take some time to reduce and turn off permanently and is how the inflation of goods and services will take a little time before it will set to reduce to a better level.
I hope with this example you will understand better.

[shield132]

Good day everyone.
Where I come from, there's been harsh economic problems for a while now. It's no news, that there's a global inflation due to a few reasons, but even in the midst of all that, a lot of countries are still doing better than others, and the development rate isn't reducing as the standard of living is still by far well to do.

My country has been battling with the dollar exchange rates. It's been soaring high, making the prices of food and other commodities soar high as well. But recently, the exchange rates dropped by over 37%, and everyone became happy ( of course apart from those who earned in $), and the prices of goods and services even went higher, further decreasing the standard of living in the country.

Now, AI and search engines will only try to give me theoretically logical explanations, but I want something practical and out of experience from people of other countries. What do you think this Economic phenomenon is and what exactly is causing it? Has your country been in a situation like this throughout it's history, and how was it resolved? 

You exactly describe the situation that exists in my country. USD was rising, the price of food and everything was rising as well and then soon after the start of the war between Russia and Ukraine, local currency to USD exchange rate significantly went down and people became happy, the national bank even had to do something to make our local currency little bit weaker because it was getting too strong against USD. This happened because many rich Russians and Ukrainians flew to my country and they brought lots of dollars with them, this resulted in increased USD income in our country and local currency becoming very strong but this didn't cause a fall in prices of food and other things, quite opposite happened and absolutely everything become terribly expensive. This happened because we are an importer country (I assume your country will be an importer country) and demand increased, so high demand resulted in a price spike and for a bonus, since there is a monopoly and corruption on things like this, distributors that import food and other goods, decided to significantly increase prices and they are profiting a lot.

[stompix]

This happened because many rich Russians and Ukrainians flew to my country and they brought lots of dollars with them, this resulted in increased USD income in our country and local currency becoming very strong but this didn't cause a fall in prices of food and other things, quite opposite happened and absolutely everything become terribly expensive. This happened because we are an importer country (I assume your country will be an importer country) and demand increased, so high demand resulted in a price spike and for a bonus, since there is a monopoly and corruption on things like this, distributors that import food and other goods, decided to significantly increase prices and they are profiting a lot.

It's pretty normal, a thing that happens to all tourist centers!

You have tons of money entering the economy but you also have demand for goods, yeah you get wealthy but the demand and people paying even with increased prices for the stuff will drive up inflation, that's why hot tourist spots are quite expensive compared to the rest of the country even when it comes to Europe or the US, and that's also the reason there is no escaping this.

More tourists more need for housing, more tourists more profits, more income from rent, higher prices for houses!
More demand for food, but not enough supply, merchants know they will sell it even if they add 20% cause there is demand, higher prices!
Higher prices mean people demanding more for their jobs, increased prices again!
And it will not stop until a balance is achieved!