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.
For global governance watchers, this was the big week of the year. Between 7 November and 16 November, the world witnessed an APEC meeting in Yanqi Lake near Beijing complete with a bilateral China–Japan ‘breakthrough’ and a major US–China climate deal; an historic ASEAN and East Asia Summit held in Naypidaw, Myanmar; and a colourful G20 meeting in Brisbane, Australia.
Notwithstanding the chorus of those announcing growing disorder, global order seems better off after these summits.
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.
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.
James W. Harpel Professor of Capital Formation and Growth at the John F. Kennedy School of Government in Harvard University. Director of Program in International Finance and Macroeconomics at the National Bureau of Economic Research.