Is Global Inflation Here to Stay?

Inflation is a macroeconomic challenge that every economy faces. We can’t really get rid of it entirely, just learn to manage it. Lately, developing nations seem to be hit harder by inflation than the developed ones. But over the last few years, it’s become a hot topic across global economies. For developing countries, like in the past, central banks can still tweak their monetary and fiscal policies to try and control things. But how will that actually impact their economies in the long run? And what about developed countries? Is this recent inflation a short-term issue, or is it the new reality we have to deal with?

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

This is the tax we all forced to pay because of the crisis based system we are using today, which is incompatible with today advanced globalized market. 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 government isn't managing it, they're using it to their advantage. They use it to reduce the value of their debt and as a way of increasing tax revenue. It appears like they're committing to manage it, but they're intentionally maintaining it since they're benefitting from it and more reason they always keep it to an assumed moderate level even though it's harming it's citizens It's not temporal, inflation has come to stay. The government has seen it's effectiveness to their monetary game and they always find ways to trigger it in order to use it to their advantage, so it's not going anywhere anytime soon.

The US itself is stucked with the dilemma it created by itself because tgere are no ways to be the number one power in the world if other countries aren't in a continious crisis. The USA continue dominating with more dollar printing to finance wars and troubles arround the world so the american power can interfer everywhere to steal resources from weak nations. This is why the USA is in continious confrontation with China because China broke the american rule and started lead the world economically that even result to sign an agreement with many world countries to reduce the american power in the global economy. What possible solution to get rid off this system of chronic crisis? No one knows. But it might be the start with bitcoin to migrate to a new model.

A more accurate definition is that inflation can be managed because its scale, frequency, and impact are largely determined by the power structures of the global elite, not simply market mechanisms. The practice of exporting inflation from developed countries to developing and poorer ones for over 40 years, through dollar dominance, supply chain control, and access to capital through financial institutions with numerous conditions (primarily fiscal and monetary tightening), has begun to be questioned following the pandemic, global economic fragmentation, and shifting geopolitical landscapes. Tightening fiscal and monetary policies by central banks in developing countries has resulted in a national shield against short-term inflation, reducing demand and stabilizing exchange rates. However, on the other hand, it has led to slowing economic growth, weakening purchasing power, and impacting MSMEs. In this situation, dependence on foreign capital increases with high interest rates, leading to a perpetual debt trap. Developing countries seem to be treating the symptoms without having full control over the sources of inflation, such as food and energy prices, and global interest rates, which are determined by major players. Global structural shifts (deglobalization projects, production relocation, energy and supply chain crises, the costs of the green energy transition, and geopolitical disruptions US-China, Russia-Europe) are also causing inflation in developed countries. Current inflation is not an accident, but part of the global economic restructuring. Governments need moderate inflation to quietly reduce the debt burden of developed countries. Large corporations are able to raise prices faster than costs, thus expanding their margins. Global uncertainty is expanding the control of financial institutions and major energy/technology players. Therefore, in developed countries, inflation is not a temporary phenomenon, but a new normal characterized by higher inflation than in the 2010-2020 era, lower growth, interest rates that will not return to 0% as before, and geopolitical volatility becoming a permanent variable. The world is currently moving from 30 years of stable low inflation to an era of moderately high, managed inflation, where major players, both governments and global corporations, are actually gaining more influence and benefits in determining the direction of the economy.

Its not new, its at least 50 years old.  People complained about the lax spending and monetary control while the space race was on in the 1960's.   That was while a gold standard was still in place for trading partners of the USA as per the Bretton Woods agreement yet the complaint was there.   This is why France has so much more gold reserves from that period of time being unrelenting in its demands for the actual gold not the paper which became FIAT, a wise choice as it turned out as they keep that gold to this day. Has to be underlined, this alters the whole world.  New money benefits those closest to the source so strengthening the position of USA or others who manage to gain access then divest the dollars or FIAT elsewhere.  Countries more distant further down the chain in trading with USA suffer the worst effects of the weak currency and see far more damage from inflation on their economies. When Mugabe caused such massive inflation in Zimbabwe he first handed the money to his supporters, who gained the benefit and less of the harm.  Those who had to accept the money quickly found it to be worthless almost overnight suffering horrible losses while attempting to retain any value from their business.   If you spend it and you have debts in this watered down money then you are care free it works out fine for you and when workers receive it as wages you become a pauper.   Though the world situation is not this extreme the system of destruction follows the same path; multiple central banks keep this policy of constant inflation.  It is a form of slavery and oppression of those lowest on the ranking vs banks of the world.

It's normal but never new. If you read a newspaper printed in the 70s and 80s or even earlier, it's the same set of inflation-related problems that you can find. The national debt has always been a problem. A slowing economy was already an issue. Deficit here, deficit there. The people have always been complaining of the rising prices of goods and services, of basic needs becoming more and more unaffordable. This has always been it. Of course, developing countries had it worse.

Inflation is not just taking it first dose over the global market, because every other team or actors are all working towards the same pattern laid for the same economic expansion in its activities, we should be er feels tired of the incidence of this same inflation, maybe that is why it doesn't come this way in crypto, bitcoin specifically, because all the policies there does not applies under a decentralized economy.