
Increase in Money Supply And Prices: What Happens to Value of Money?
One of the debates which has intensified recently is to what extent is lax monetary policy causing the increase in the price inflation.
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%.
The inflation in Hungary is just as bad as it is in the rest of Europe: in 2021 the rate of the inflation was 7.4%, which was a 13-year-old record. It is a logical step from the government that they want to reduce its level and want to moderate the prices.
Inflation is often referred to as a tax, imposed without parliamentary approval, without legislation and without considering the consequences. Today’s inflation is special: printing money seemed to be pretty much the only way to respond to the pandemic and to finance rising public spending.
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.
Current inflation is partly the result of global processes: rising energy commodity prices and disruptions in supply chains. However, its scale in individual countries is the result of the policies of individual governments.
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 European Commission proposes an extension of price reporting for most agricultural products in all its variety for all economic actors of the value chain on weekly and monthly bases. According to the EC, this measure will address a lack of transparency and information asymmetry in the food supply chain.
If Ukraine loses the chance to receive assistance from the IMF and other international donors in 2018, the government will be hard-pressed to execute planned fiscal expenditures in 2018. The fiscal indicators will be also revised for 2019 to lower real GDP growth and higher inflation.
Energy Taxation Directive (ETD) claims to improve the Single Market, promote energy efficiency, and contribute to jobs and growth. In reality, it fails to achieve these objectives. The research by LFMI suggests that in 2012 the grey market for fuel comprised nearly 20 percent of the market for transportation fuel.