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.
Following Russia's military incursion in Ukraine, the US immediately threatened various sanctions against Moscow, including personal travel bans, an ejection from Russia from the G8, and trade and finance measures. In retaliation, a Putin advisor warned that Russia could abandon the dollar as a reserve currency and/or default on loans to US banks. Neither party however can afford any form of action, nor do they have any real influence over each other’s economies.
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.
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Vice President and Director of the Global Economy and Development Program at the Brookings Institution. Former Turkish Minister of State for Economic Affairs. Head of the United Nations Development Program (UNDP) from 2005-2009.
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