Global Inflation refers to the inflationary trends generally noticed in the diverse sectors of the economy of a country. As an important worldwide phenomena, Global Inflation varies largely, owing to the trend components of inflation as well as due the fluctuations arising in the frequencies of the commercial cycles.
Explanation of the concept of Global Inflation:
World Inflation may be defined as the as the function of some of the most essential real developments having shorter purview, as well as monetary developments of longer purview, both on a global basis. This definition is important in the sense that it helps in direct analysis of the concept, which admits that around 70% of the discrepancies involved with Global Inflation are based on both monetary and real developments.
Inflations on the national levels are all attracted by Global Inflation, whereby the national digressions from the common fact revert back. However, the evidence of such activity is similar and booming as far as different sample periods and nations are concerned. Moreover, the impact of Global Inflation has proved to be different in different countries across the world. Thus, a country like Germany which is dedicated towards stabilization of prices is least affected than nations like Italy, having feeble inflation discipline.
Last but not the least, the concept of Global Inflation has also made it possible to re-consider the rising debate on the persistence of inflation.
Contemporary notion about the growing nature of Global Inflation:
The rise in the rate of inflation in recent times has forced a number of countries like China and South Africa to take necessary steps to restrict the growing pace of inflation. To the effect, the Chinese government has raised its rate of interest. The South African Reserve Bank and the overall banking sector across the globe is also working for curbing the growth rate of inflation. This, in fact, has become immensely beneficial activity for the existing conditions of the world economy at present and in days to come.
class="MsoNormal">The Japanese economy continues to defy gravity despite a Mount Fuji of debt that has no parallel in Western countries, and the worst problem of demographics among all the world’s rich nations. Japan’s net debt-to-GDP ratio is about 135%, even higher than the Southern European nations when they plunged into crisis. Meanwhile, the World Bank’s figures show one of the world’s lowest fertility rates of 1.39 births per woman, leading to rapid population decline.
Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Nouriel Roubini, a.k.a. “Doctor Doom”, is chairman of Roubini Global Economics and professor of economics at New York University’s Stern School of Business. Roubini has been consistently cited as one of the world’s top global thinkers. This year, he was voted as the most influential economist in the world by Forbes magazine.
QFINANCE is a unique collaboration of more than 300 of the world’s leading practitioners and visionaries in finance and financial management, covering key aspects of finance including risk and cash-flow management, operations, macro issues, regulation, auditing, and raising capital.
Andrea Edwards has worked in marketing and communications all over the globe for 20 years, and is now focused on her passion – writing. A gifted communicator, strategist, writer and avid blogger, Andrea is Managing Director of SAJE, a digital communications agency, and The Writers Shop – a regional collaboration between the best business writers in Asia Pacific