Will Conflict in Middle East Cause More Inflation

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In 1973, in response to the Yom Kippur War, OPEC introduced an oil embargo which caused prices to rise 300%. It ushered in an era of high inflation and political volatility. In 1979, the Iranian revolution caused another 300% rise in oil prices which caused a secondary inflation shock and the deep recession of 1981. …

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Does Printing Money and QE Directly Lead to Inflation

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  Will Printing Money and QE cause Runaway Inflation?Watch this video on YouTube   After the First World War, the German government were left with huge debts and reparation payments to the Allies. Faced with striking workers the government began printing money to pay workers higher salaries. It gave the government a temporary breathing space, …

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Return of Covid-Style Shortages and Inflation?

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Do you remember when Covid led to empty shelves, panic buying of toilet paper and then when it all ended – a surge in inflation? It was only 3 years ago, though it feels longer. However, US stores could soon see looming shortages as 145% tariffs on China caused a sharp drop in US imports …

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US inflation in the post-war period

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This is a graph showing US inflation in the post-war period. In a nutshell, US inflation has been fairly low and stable in the post-war period. The exception being in the 1970s and early 1980s when inflation became embedded. After the Second World War there was lingering inflation for a few reasons. Firstly, the war …

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Definition of Inflation

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Inflation is a situation of rising prices in the economy. A more exact definition of inflation is a sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise. The rate of inflation measures the annual percentage change in …

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Why Printing Money Causes Inflation

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Reader’s Question: Why does printing money cause inflation? Does this always occur? Summary If the money supply increases faster than output then, ceteris paribus, inflation will occur. If a government prints extra money, households will have more cash and more money to spend on goods. But, if the amount of goods stays the same, the …

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Is the Real Inflation Rate Actually Higher?

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In the past few months, inflation in the UK has halved from 10 to 4.7%. In the US it has fallen to 3% but ask an average shopper and they may express scepticism, the cost of living seems to be rising much faster. In 2021 Jordan Peterson tweeted that he believes inflation was 15% rather …

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