12 Apr 2022 9:22 am
The Covid shutdown affected economies in several ways. One way was governments printing more money and giving it away so people could survive without a regular paycheck. Doing this was clearly a wiser choice than not doing it, but the result was too much money chasing fewer goods, and that led to inflation. Another thing was that agriculture did not keep up with demand with people producing food and other materials and distributing them, and that also led to inflation.
It has been established that a 2% rate of inflation serves as a cushion against diminished supplies causing large swings in prices, and no one in charge of national economies really wants greater inflation than that.
Inflation is better than starvation, evictions, foreclosures. Covid did not leave us with any good choices.
It has been established that a 2% rate of inflation serves as a cushion against diminished supplies causing large swings in prices, and no one in charge of national economies really wants greater inflation than that.
Inflation is better than starvation, evictions, foreclosures. Covid did not leave us with any good choices.