The US Federal Reserve has already raised its lending rate by 75 basis points over the past two months. Money markets anticipate further increases of at least 200 basis points by the end of 2022. The European Central Bank (ECB) has announced the end of its government bond-buying program in the third quarter of 2022 …
Tag: inflation
The Uncertainty of the Future produced by the Crisis
The effects of the current crisis are manifold, but there are two conditions that limit the problem: energy prices and inflation. The rise in energy prices was directly reflected in the rise in inflation, which in March reached 7.5% in the Eurozone and 8.5% in the United Kingdom and the United States respectively. These countries …
Greece Returns Rapidly to the Era of Financial Support Packages
Greece, a member-country of the Eurozone/EU with 388 billion euros in public debt and a deindustrialized economy, is in danger of paying dearly for the EU sanctions imposed on Russia. The debt of the General Government of Greece, despite being sustainable in the medium term, despite being supported by the ECB and despite the fact …
What Can trigger a Prolonged Global Recession?
With Russia’s war in Ukraine a month away, Trust Economics (https://trusteconomics.eu) has its estimates for the global economy outlook this year. Within this short period of time, forecasts shifted from a limited recovery after COVID to an increasing chance of a full-blown global recession. The chances of a recession are rising, given the volatile inflation …
Using Inflation as a Tool to Improve the Competitiveness of an Economy
An Εurozone/EU member-country’s economic policy can use inflation as an opportunity to achieve two goals: First, to increase the competitiveness of the economy and therefore its employment and growth rate. Second, to reduce the Public Debt-to-GDP ratio. Combining the above, with the imposed need to relieve as much as possible the citizens, especially the weaker …
The Seven Causes-Sins That Trigger Inflation
Arrogance, jealousy, rage, laziness, greed, greed, lust. These are the seven deadly sins from which, if the sinner is not “cleansed”, he will be deprived (according to Dante) of Divine Grace and will be led to the eternal condemnation of his soul. What are the sins that the poor consumer pays today in all the …
Inflation Losses
Citizens of both the US and the EU have learned to live, in recent months, with the resurgence of the phenomenon of inflation that has re-emerged sharply since it was last recorded in early 2011. Adapting to the new reality should be done immediately, as the impact on disposable income is already here as well …
Persistent High Inflation Prices Reflect Changes in the Real Economy
The inverse relationship between inflation and unemployment has been shown to be temporary-short-term and does not stem from inflation per se, but from unexpected inflation, which contributes to maintaining inflation. By the fact that inflation can contribute to the development of an economy, we mean the positive relationship between rising inflation, that is, the increase …
Inflation: A lot of Money chasing Few Goods
Price increases and inflation caused by specific factors, such as product shortages, supply / demand and liquidity. The natural or artificial reduction of the availability of a product contributes to a drastic increase of its price. Lack of duration makes the increase permanent. The ephemeral shortage eventually leads to a return of the price to …
Income Increases in the EU are Imperative
Due to the difficulties faced by households in coping with rising energy costs, EU member-countries’ governments have entered the process of supporting household electricity bills through a subsidy policy. Sure, such a policy – covering subsidized electricity increases – is a humanitarian benefit, but it is not enough, as it only covers part of the …