Global Inflation; a new normal?

[Jawhead999]

Yeah I think so, it seems every countries suffered rising inflation rate.

In developed countries, their inflation rate went higher because there are many people from third world countries want to work abroad, also refugees which the government give donation to them.

In developing countries, birth rate aren't controlled, so the population keep rising and make everything tougher to get as the demand rise.

[sleepfirefly]

inflation can't be eliminated completely but we know that some countries may have less while others have higher inflation and how countries address this is usually they try to solve it on their own but what countries need now is to cooperate because higher prices in one country affects the global economic chain

people have become too selfish and only think of themselves but this time it will actually be helpful if they tried to think of how their actions affect the more macro economy

[dunfida]

The problem already started after the world agreement to set the US dollar as the currency of the world without taking into consideration the heavy risk that will come with concentrating such a big power in the hand of single centralized authority. Yes the world is stuck with the inflation as a continious crisis that can't get rid of it.

I agree with your point of view. The world monetary system is ill and broken inside.
The US has no intention to limit printing money like they print ordinary papers in a printer. The other countries are mostly following the dollar movement. The increasingly US debt, the Covid crisis and what bring with it from supply chain delay and job cuts made the situation way worse for everyone.  The Ukraine conflict and the money moved to the war just made things way worse in Europe for everyone.
Inflation during the last 5 years is the worst and there is no stop.

The current state of the global economy really shows how deep the flaws in the dollar dominated system run when the world decided to anchor trade, debt, and reserves to the us dollar it handed Washington enormous power not only over its own economy but over almost every other nation the federal reserve’s decisions ripple across borders and affect everything from food prices in africa to real estate in asia it worked fine when the dollar was relatively stable but once the us started printing money at unprecedented levels it triggered waves of inflation that no country could fully escape.

The covid crisis only exposed what was already a weak foundation when governments began injecting trillions to save their economies it was like trying to cure a fever with fire it kept things moving for a short time but created massive long term inflation and debt now every country is paying the price supply chains are broken cost of living is skyrocketing and wages are barely catching up the war in ukraine pushed things further especially in europe where energy costs exploded and central banks had to tighten aggressively just to keep their currencies from collapsing.

[MFahad]

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.

one country are dependent to other country. Because a country supplies many things such as oil, weapons and different products to different countries. When war breaks out between two countries This war had negative effects not only on this country also on the entire world. its disrupts trade between two countries, which also increases the prices of these products. And the common people are becoming victims of inflation. Therefore, it is important that peace and order should be established in all countries of world instead of conflict or war. With this, all countries will not only be saved from inflation but will also achieve development. War is not a solution to any problem, it causes losses to both countries. If all the countries in this world come together to formulate a strong policy, it will be very easy to control inflation and this is the path to prosperity for all countries.

[viljy]

Yes, this is the new norm. Previously, during the time of the undivided domination of the dollar system, it was the case that the United States "exported" its inflation to other countries, so inflation was low in the States themselves, and much higher in other countries (mainly in third world countries). Now, the influence of the dollar has greatly decreased, and quite a significant part of trading is not carried out in dollars. Treasuries are also bought less, but they sell more, therefore, as a result, the intensity of the "export of inflation" has decreased. Therefore, dollar inflation began to "stay" in the United States (not yet completely).

[Bushdark]

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 has been there for centuries and this is not the first time for the world to experience a global inflation and it's not going to kill us. We experienced a global inflation during COVID and the world did not end. Seeing people talking about inflation frequent can create panic and I think many are getting prepared for the worse that can happen to them.
Inflation is not going to kill you but to make you make better choice when spending money. There are extravagant lifestyle many are living even when they don't have a luxury salary to cover all their expenses.

[KiaKia]

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?

Since I was born there was never a time where things become less expensive compare to a year or two years ago, and since that time people have been complaining about everything, taxes and inflation.

Fastforward to today nothing have changed, instead things become even more worse than before, and funny thing is the increase of world population, the more numbers of people keeps growing the more things will keep changing.

Government won't be able to safe it's own people as time goes on, unless they come up with a way to change the tides of the world's problem, every countries have a debt, brunai and Palau just seem in better position than others because they have no external debt like the others.

[purple_sparkles]

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?

Since I was born there was never a time where things become less expensive compare to a year or two years ago, and since that time people have been complaining about everything, taxes and inflation.

Fastforward to today nothing have changed, instead things become even more worse than before, and funny thing is the increase of world population, the more numbers of people keeps growing the more things will keep changing.

Government won't be able to safe it's own people as time goes on, unless they come up with a way to change the tides of the world's problem, every countries have a debt, brunai and Palau just seem in better position than others because they have no external debt like the others.

In my opinion, what’s happening now is that most parliaments around the world have reached some kind of rock bottom. Many politicians who strive for power go there only to enrich themselves and become part of corrupt schemes. And now, when all this “rot” is on the verge of bursting out, the only thing I’m afraid of is that, in order to cover up all these shady dealings, global wars might start around the world.

[minairia3]

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.

What you say is not wrong but you need to know that controlling inflation is not as simple as you think. Inflation is not only caused by printing money but also by imbalances in supply and demand, increased production costs, increased energy prices or economic crises...which will also cause inflation to increase.

Controlling inflation is extremely complex and requires a combination of factors, not simply printing less money.

Have you ever thought what would happen to the economy, to us, if the government didn't print money and pump it into the economy during the covid pandemic? In that case, if bitcoin was used as currency and the government was not allowed to print money, the economy would be much worse.

[lixer]

Even if the central banks regulate their monetary and fiscal policies, this will not really help the economy as we have seen in the past that the effects of inflation will mostly be seen on those who are surviving below the poverty level. These people do not care about the fiscal policies. All they want is cheaper commodities so they can survive their day. With inflation, all they will see is the rising prices for basic commodities and it just make it difficult for them to survive without extra efforts.

Usually in developing countries, the number of people living below the poverty line is much higher as compared to those in developed countries and that might be the reason why inflation hits hard on developing nations.

[allthebitandbobs]

Inflation has been there for centuries and this is not the first time for the world to experience a global inflation and it's not going to kill us. We experienced a global inflation during COVID and the world did not end. Seeing people talking about inflation frequent can create panic and I think many are getting prepared for the worse that can happen to them.
Inflation is not going to kill you but to make you make better choice when spending money. There are extravagant lifestyle many are living even when they don't have a luxury salary to cover all their expenses.

Inflation will definitely not kill us but it will make surviving a lot difficult and that's why we mostly talk about it. Inflation does not really damage the life but it harms the monetary means of surviving. Basic commodities like food and shelter will skyrocket in case of rising inflation and this will make things difficult for families who have to struggle getting the bread and butter. They will have to spend more to get the same commodities with their same old job which does not pay them more because of inflation.

Luxuries good will too be affected by inflation but people who can afford those will not really care about the rising prices. The ones who will be mostly affected will be the middle and lower class who find it quite difficult to survive due to the inflation.

[Muba20]

One of the main reasons for inflation in developing countries is their uncontrolled money printing and increasing government debt and other one is corruption. If the population of the country continues to grow and if employment is not increased accordingly, then there is a big risk of inflation. Currently, each country is printing money according to their own convenience, which is actually causing such a high rate of inflation. I believe that if the government of a country really wants to control the inflation rate on its own, it is possible to do so, but if the international trade situation is abnormal, then it is not possible for the government of any country to control it.

[BALIK]

One of the main reasons for inflation in developing countries is their uncontrolled money printing and increasing government debt and other one is corruption. If the population of the country continues to grow and if employment is not increased accordingly, then there is a big risk of inflation. Currently, each country is printing money according to their own convenience, which is actually causing such a high rate of inflation. I believe that if the government of a country really wants to control the inflation rate on its own, it is possible to do so, but if the international trade situation is abnormal, then it is not possible for the government of any country to control it.

But the reason governments print money is because they have no better options to adjust their economies to the uncertainties arising from international trade. As you said, there are many causes beyond the control of governments and when they cannot prevent external shocks, printing money becomes one of the few tools they can use.

Honestly, I can't think of a better solution than printing money. What other solution do you have if global energy prices rise, making imports expensive and affecting domestic production?

In all fairness, regulating the economy is not as simple as we think, so the government should not be blamed entirely. However, I agree with you that corruption is also one of the reasons why inflation is getting worse and the fault lies entirely with the government.

[Coyster]

Inflation is a global issue and it has always been that way, just in varying degrees. The situation is dire in certain 3rd world and developing countries and for some like Venezuela, it is now at a level of hyperinflation.

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?

Improved monetary policy would provide some form of relief, but it is not a solution. There are other factors that drives inflation, other than monetary policies. Government need to implement better policies which can reduce inflation, policies that would improve economic productivity. Government should also try to control prices and wage increase, etc. Though sometimes i understand that there are factors that cause inflation which are out of government control, like external geopolitical events, such as wars and economic rift.

[RockBell]

Inflation has been there for centuries and this is not the first time for the world to experience a global inflation and it's not going to kill us. We experienced a global inflation during COVID and the world did not end. Seeing people talking about inflation frequent can create panic and I think many are getting prepared for the worse that can happen to them.
Inflation is not going to kill you but to make you make better choice when spending money. There are extravagant lifestyle many are living even when they don't have a luxury salary to cover all their expenses.

Inflation is really on the rise and it started for a long time actually and the government would have implement polices to help reduce the rate at which the percentage keep increasing. And for a country to run properly with a good economy status they need to do a lot of analysis and the same time increase the production, than the consumption rate. So there are ways that they can slow the rates down. And they have left the fight for the citizens to fight them self and this have made inflation to increase.

And is is something that is global, the only fight available is individuals they need to know how they can be able to prepare solutions on how to deal with it. And why people panic is because the chances are not equal and people are suffering from this end because people are getting poorer because they don't longer have the capacity to cope with the way it keeps growing and the earnings keeps getting smaller.

I don't think this is even about luxury because how many people are living a luxurious life when they are finding it hard to even sustain them self.

[Cheema02]

inflation can't be eliminated completely but we know that some countries may have less while others have higher inflation and how countries address this is usually they try to solve it on their own but what countries need now is to cooperate because higher prices in one country affects the global economic chain

people have become too selfish and only think of themselves but this time it will actually be helpful if they tried to think of how their actions affect the more macro economy

Yes, You are right inflation is a major problem for whole world and its difficult to reduce it to zero but it can be stabilized. And for this action glowbal corporation plays an important role as they did it a decades ago. The reason is that all supply chains, energy markets and every field of life are interconnected to each other and a simple effect can make a huge impact on global market. And majority countries follow one nation polices and that's why it create Pressure on market. If world leaders change there vision according forien polices and focused on coordinations of food security and fuel supplies and in other fields then its may help in smoth price shocks.  MAnd you are also right about mindset issues because globally many countries only focused on there own and they don't coprate well with other countries. And its a big problem.