As your previous question, the manufacturers and services providers seek to compensate their loss after pandemic. This tend to new economic situation may tend to years.

Also, this time the reason behind the crises could not be the stock markets, but real investments as well.

Mohammed Faez Hasan

Thank you dear for your contribution

In your opinion, who are the winners and losers of this crisis?

Othmane Touat Thank you dear for your question.

Here we talk about general case, where the international economy live in early stage of boom (before inflation stage) that hit economy entirly. All countries will suffers and the poor countries who does not have manufacturing and depend on importing will suffers more than others.

Jaroslav Dvorak

Unfortunatly its happening

Jaroslav Dvorak

It is true that the price increase in the range of 4-7 percent from the economic point of view seems acceptable if it is proportional to a low level of unemployment (according to the Phillips curve).

Mohammed Faez Hasan you are welcome dear

True, the current price hike is largely due to the recovery in the economy.

The problem, from my point of view, lies in the deep effects that it can have at the micro level, especially on the low- and middle-income groups, which were most affected by the pandemic through their loss of work positions, and therefore the fear is that the crisis (inflation) may be associated with the continued rise in unemployment.

بيداء عبد السلام مهدي شكرا جزيلا على المشاركة

صحيح أن ارتفاع الأسعار الحالي يرجع إلى حد كبير إلى اثار الوباء.

تكمن المشكلة ، من وجهة نظري ، في الآثار العميقة التي يمكن أن تحدث على المستوى الجزئي ، وخاصة على الفئات ذات الدخل المنخفض والمتوسط ، والتي كانت الأكثر تضررًا من الوباء من خلال فقدان وظائفهم ، وبالتالي الخوف هو أن الأزمة (التضخم) قد تترافق مع استمرار ارتفاع البطالة.

All central banks of big economies, including ECB and FED, used expansionary monetary policy and injected a lot of money in their economies to relaunch the economic activities to face the impact of covid, in addition to rise of oil prices, thus high inflation isn't a surprise at all. FED for example let the inflation went beyond its target 2%, it reached 5.4% as annual rate in September which is the highest since 13 years. For the moment Jerome Powell says the high inflation is temporary and FED is probably going to reduce its bonds purchase program next month. But some analysts think the situation is worse and they are expecting a stagflation situation, which means high inflation and economic stagnation simultaneously.

Massinissa Ameziane Thank you dear

Yes, it is true, this is the great fear of a stagflationary situation like it happened in the seventies of the last century.

It seems that the coming days are full of surprises

Yes, rising inflation is becoming a serious problem. When in 2021 many economies are quickly recovering from the economic crisis caused by the SARS-CoV-2 (Covid-19) coronavirus pandemic, it is as a result of high-amount public anti-crisis financial aid programs. In some countries, inflation has already peaked at 5, 6 or higher. If this increase continues, there is a risk that inflation may run out of control. Central banks in some countries have already started to raise interest rates for several months, which is to cool down the economic processes, lead to an increase in the cost of borrowed money in bank loans and treasury bonds and to limit the scale of inflation growth. however, the problem is still serious.

Best wishes,

Dariusz Prokopowicz

Yes, inflation is the most probable outcome of the virus policies.

In the past 5 months in the U,S,, consumer prices have risen by 5% or more over their level 12 months previously. This is the greatest rise in a generation. Part of the blame most recently is due to supply chain problems, in part driven by the covid pandemic. Hopefully such bottlenecks will be resolved by early next year. However, if they persist, we are likely to see an uptick in strike activity. Workers already feel strained having to adjust to pandemic-induced constraints and now they see their real wages being eroded by inflation. This could spill over in the political arena and hurt the Biden Administration in the 2022 Congressional elections next November and benefit Republicans, including many supporters of former President Trump.

YES