Another argument in favor of ruinous inflation is that the money supply in major countries has accelerated sharply. In the United States, money provide development has taken place at a historic pace through the pandemic. This means that the velocity of money, which is the number of times a dollar adjustments hands in a time period, has fallen sharply during the pandemic. Consequently, the surge in cash provide has not been inflationary, no less than not but. That is, if individuals anticipate excessive inflation, they will behave in ways in which reinforce high inflation—and vice versa. For example, if employees anticipate excessive inflation, they will be extra likely to demand massive wage increases. If companies count on high inflation, they are going to be extra prone to cross price will increase on to their clients in the type of high prices.
German inflation levels exceed 3% for first time since 2008 It’s the first time because the 2008 world financial crash that inflation in Germany has reached such levels. DW seems behind the enterprise headlines DW’s new video collection provides deep dives into the most relevant cross-border enterprise stories of today, guiding you through commerce conflicts, provide chain challenges, world …Read more