Global Inflation; a new normal?

[CTO114]

Inflation a Macro-economic problem is part of any economy as it can't be full eliminated, but only managed.

Over the years, the effect has been felt more in developing countries, than developed countries.
But in recent years, it has taken centre stage in the various economies of the world.

As it concerns developing countries, as has been the case in the past, the Central Banks can however regulate and tighten their monetary and fiscal policy. How would this move affect their economy?

In developed countries, is the recent inflationary trend a temporal situation, or the new normal?

[Free Market Capitalist]

Rather than a new normal is business as usual since 1971. The difference, as you point out, is that developing countries used to have much worse inflation. But that difference still exists; what has changed is that inflation has accelerated worldwide. The beginning of this acceleration can be traced back to the 2008 crisis, which has led to a headlong rush to create more and more money.

[Stavri]

In developed countries, is the recent inflationary trend a temporal situation, or the new normal?

Well. hard question. i am not sure. i dont think so...
But still inflation can be persistent, but it is not guaranteed to be always high. inflation usually tends to rise after crises and then decline.

[ruykeri]

As long as the economic monopoly of fiat currency exists, inflation will not decrease. Where the government and central bank of a country have the power to print and control fiat, they can print currency at their own whim and reduce its value. This will never stop. Because now the governments of most countries give more importance to their own interests than the people. And there is no way to get out of this system. That is why we have to be personally independent. And Bitcoin will be the main basis of the economy for personal freedom.

[WillyAp]

Global inflation rate is one of the most unreliable data there is.
Why even use it?

[Zlantann]

Inflation a Macro-economic problem is part of any economy as it can't be full eliminated, but only managed.

Over the years, the effect has been felt more in developing countries, than developed countries.
But in recent years, it has taken centre stage in the various economies of the world.

As it concerns developing countries, as has been the case in the past, the Central Banks can however regulate and tighten their monetary and fiscal policy. How would this move affect their economy?

In developed countries, is the recent inflationary trend a temporal situation, or the new normal?

Double-digit inflation is common in developing nations, but this is not the case in developed nations. Some developing nations faced as much as a 50% inflation rate (examples are Argentina, South Sudan, and Syria), causing their currency to lose the greater part of its value.

Some nations have not fully recovered from the effects of COVID-19, and the tariff spat between major economies is also affecting some countries. Inflation is always prevalent in developing nations because of poor economic planning and corruption.  But developed nations have more experienced economists and more sources of revenue. So I think the Inflation in developed countries is temporary.

[abaeze]

Inflation has become a common issue in recent times. If one of the reasons for the increase in inflation worldwide can be identified, then I would say international conflict. Currently, all countries in the world are dependent on other countries. They conduct international trade with each other through oil, arms, food, and electrical products. When a war starts between these countries, it has an economic impact on that country and all the countries that have commercial relations with that country. As a result, inflation increases. Therefore, I think that all countries in the world should work together with a policy to reduce the rate of inflation.

[mindrust]

It became the new normal the moment the FED set a 2% inflation target. Why 2%? Why not 1%? Why not 1,5%? They said the economy needs a little bit inflation so it won’t stop which is was an excuse to print more money. And now the inflation in the US is above 2%, it is refusing to go below 2%. Last time I checked it was around 3% in the US which is massive for a developed country. The numbers they announced might be bogus too. They revise the numbers all the time. Why would even believe whatever they say at this point? The rest of the world isn’t much different too. Inflation is rampant everywhere and yes it is here to stay. Know it and act accordingly. Nobody is coming to rescue you. Buy bitcoin that’s probably the best inflation hedge along with gold.

[Gozie51]

Inflation a Macro-economic problem is part of any economy as it can't be full eliminated, but only managed.

But I feel inflation is a normal phenomenon in the country, if it is not normal then it won't be in economics study. While growing up, it was not a strange topic in the class room and I have come to see that countries from time to time get in and out of it because of the policy they are embarking on. Inflation can be used as regulation of different types in the system, from cutting down of excess money in the system, to increasing of investment etc. So it depends on which side of the divide that we are looking at inflation from. What is bad is when the government is not able to control it and people suffer unbearable hardship because of recession coming from bad management of inflation.

[Mhizlove]

Inflation you see does not have two sides. As for the developed countries, inflation can be temporary because supply issues will be sorted and the rise in price of commodities will still later reduce.
But it can also be the new normal because the world is changing, landlords are increasing house cost, electricity cost and war, also the prices of goods are increased steadily. Hopes are very high if the price will drop but it seems like it will take a little time.

[chigo]

Inflation a Macro-economic problem is part of any economy as it can't be full eliminated, but only managed.

Over the years, the effect has been felt more in developing countries, than developed countries.
But in recent years, it has taken centre stage in the various economies of the world.

As it concerns developing countries, as has been the case in the past, the Central Banks can however regulate and tighten their monetary and fiscal policy. How would this move affect their economy?

In developed countries, is the recent inflationary trend a temporal situation, or the new normal?

Inflation is something that a country cannot avoid, especially developing countries, no matter how well the country manages its spending.

The best approach that can be implemented by developing countries to survive severe inflation is to create stable policies by reducing production costs, providing stable wages for workers, and offering social assistance to lower- and middle-income citizens to strengthen their purchasing power.

[Webetcoins]

Not going to stay here forever, but going to happen again in the future. What I mean is that inflation will drop, all the way down to under 4% for sure, in most nations, not all, some are like Zimbabwe that can't be fixed, there are a dozen or more nations that will stay with high inflation because of corrupt governments.

But most will drop under 4% yet again one day, I am sure of it, and when they do, it is going to be countdown for the next crisis.

Because that's how the market resets itself, we will have yet again another crisis that will make it 10%+ once more, and that will be terrible for all of us for a few more years and that cycle will continue forever, go up, recover for years, go up again and repeat.