Inflation in the Modern Economy: Context and the Impact of the War in UkraineInflation, defined as a sustained increase in the general price level of goods and services in an economy, has become a hot topic in contemporary global economic discussions. It erodes purchasing power, reduces the value of savings, and creates uncertainty for businesses and consumers alike. Understanding inflation involves recognizing the direct causes, such as supply and demand imbalances, rising production costs, and different forms of government intervention. Today, the world faces inflationary pressures influenced by a combination of global events, including the ongoing war in Ukraine, which has created significant disruptions in energy and food markets, among others.
July 9th, 2024