Inflation, the global financial crisis, and COVID-19 pandemic

Main Article Content

Grzegorz Jałtuszyk

Abstrakt

In the years 2021–2022, world inflation has drastically increased. The analyses of the main characteristics of the 2007–2009 financial crisis and of the economic crisis caused by the COVID-19 pandemic as well as of the rise in total debt of the non-financial sector suggest that the growth in inflation was triggered by excessive debt growth of the government sector in 2020–2021. In that period, the main goal of the debt growth of the government sector was to finance the aid schemes limiting the negative effects of the COVID-19 pandemic. These aid programmes were indispensable to avoid deep and long-term global economic recession, however, their value was too high to keep inflation in the world under control. The fiscal intervention of particular countries should be co-ordinated internationally, as the cumulative result of the operations undertaken by particular states might have detrimental effects globally.

Downloads

Download data is not yet available.

Article Details

Jak cytować
Jałtuszyk, G. . (2023). Inflation, the global financial crisis, and COVID-19 pandemic. Journal of Management and Financial Sciences, (46), 9–19. https://doi.org/10.33119/JMFS.2022.46.1
Dział
Articles

Bibliografia

1. Andre, P., Haaland, I., Roth, C., Wohlfart, J. (2021). Inflation narratives, CEPR Discussion Paper, 16758.
2. BIS (2022). Credit to the non-financial sector. Retrieved from: https://www.bis.org/statistics/totcredit.htm?m=2669 [accessed: 06.06.2022].
3. Bonam, D., Smădu, A. (2021). The long-run effects of pandemics on inflation: Will this time be different? Economics Letters, 208.
4. Buiter, W., Rahbari, E. (2012). The ECB as Lender of Last Resort for Sovereigns in the Euro Area.C.E.P.R. Discussion Papers, 8974.
5. Claessens, S., Kose, A., Laeven, L., Valencia, F. (2014). Financial Crises, Causes, Consequences, and Policy Responses. IMF. Retrieved from: https://www.elibrary.imf.org/view/books/071/20264-9781475543407-en/20264-9781475543407- en-book.xml [accessed: 15.05.2022].
6. Dembiermont, C., Drehmann, M., Muksakunratana, S. (2013, March). How much does the private sector really borrow? A new database for total credit to the private nonfinancial sector. BIS Quarterly Review, pp. 65–81. Retrieved from: https://www.bis.org/publ/qtrpdf/r_qt1303h.pdf [accessed: 04.05.2022].
7. Ha, J., Kose, M.A., Ohnsorge, F. (2019). Inflation in Emerging and Developing Economies Evolution, Drivers, and Policies. The World Bank. Retrieved from: https://www.worldbank.org/en/research/publication/inflation-in-emerging-and-developing-economies [accessed: 20.04.2022].
8. Humphrey, T. (1974, May/June). The quantity theory of money: its historical evolution and the role in policy debates, Federal Reserve Bank of Richmond. Economic review. Retrieved from: https://core.ac.uk/download/pdf/6917453.pdf [accessed: 26.05.2022].
9. IMF (2022a, April). World Economic Outlook database. Retrieved from: https://www.imf.org/en/Publications/WEO/weo-database/2022/April/download-entire-database [accessed: 17.06.2022].
10. IMF (2022b). Fiscal Monitor Database of Country Fiscal Measures in Response to the COVID-19 Pandemic. Retrieved from: https://www.imf.org/en/Topics/imf-and-covid19/Fiscal-PoliciesDatabase-in-Response-to-COVID-19 [accessed: 12.06.2022].
11. Koester, G.B., Lis, E., Nickel, C., Osbat, C., Smets, F. (2021). Understanding Low Inflation in the Euro Area from 2013 to 2019: Cyclical and Structural Drivers. ECB Occasional Paper,2021280. Retrieved from: http://dx.doi.org/10.2139/ssrn.3928302 [accessed: 16.04.2022].
12. Lavoie, M., Fiebiger, B. (2018). Unconventional monetary policies, with a focus on quantitative easing. European Journal of Economics and Economic Policies: Intervention, 15(2), pp. 139–146.
13. Potter, S. I Smets F. (2019). Unconventional monetary policy tools: a cross country analysis, BIS CGFS Papers, 63.
14. Rees, D., Rungcharoenkitkul, P. (2021). Bottlenecks: causes and macroeconomic implications. BIS Bulletin, 48.
15. Schenkelberg, H., Watzka, S. (2011). Real Effects of Quantitative Easing at the Zero-Lower Bound: Structural VAR-based Evidence from Japan, CESIFO Working Paper, 486