Every individual earns money for living somehow. The society agreed that the government is needed and this means we should pay money for their service, and we call it taxes. We may not like paying taxes, but we understand the need for the government to exist.
The current social package worth more than a billion euro has definitively confirmed that Slovak government is going kamikaze in the area of public finances. After all, the money is “lying on the pavement”.
The growing energy costs play an important role for the increase of the overall consumer price indices during the last couple months and threatens a maintenance of high inflation rates during the entire 2022.
One of the debates which has intensified recently is to what extent is lax monetary policy causing the increase in the price inflation.
The 20th anniversary of the euro was marked by an increase in price inflation. In the euro area, annual consumer price inflation reached 5% in December 2021. Lithuania recorded the highest rate of 11%.
Rising consumer prices have become an important issue both in the world and in Slovakia. Although with the current single-digit growth, consumers of the 1970s would have laughed us out, it is good that we are talking about this topic out loud. Perhaps it will help us avoid much bigger problems.
Governments have responded to the pandemic by printing money, thus disrupting the usual economic relationships. Financial capital, which was long been regarded as a most-demanded resource, has lost its position to raw materials which in turn have lost to labor force.
The 20th century could be referred to as the century of inflation. Monstrous inflation took place in many countries, such as hyperinflation in Germany in the 1920s, in Hungary after World War II, or in Zimbabwe and Venezuela in the recent past.
The trial, which began on July 27, 2020 at the Vatican, is not just an investigation into the financial investments of the Secretariat of State in London. It is a “hat” under which a broader, international anti-corruption investigation lies. Moreover, the trial itself became known as the “trial of the century” before it even began.