Inflation: what's going on right now? | UK Economy

[@macflod]

What also about supply issues regarding old suppliers in Eu who have more paperwork obstacles to export. That also a reason? - the introduction of extra red tape

[@syedadeelhussain2691]

Remember, inflation passes through to the economy after lags. A. Policy Lag B. Time Lag

[@suhaniahuja1604]

But if they were to stop spending before, ie. cut down furlough spending this would have had far more regressive effects and could have been detrimental to lower-income households, in what other ways could they have reined in spending?

[@zhongwenren]

Add to that the restrictions due to China's COVID policy causing supply issues and the breaking of just in time delivery models, which do not appear able to quickly adjust to major disruptions

[@Traffy_01]

period of stagflation to follow?

[@hicklesgaming2104]

No workers.

[@ingilizcehazrlk9134]

Printing money was not right thing to do. They did it. Here are the consequences. If there's not enough production, then prices would go up. There's not enough production because marginal cost of production is going up. Mc is going up because of inflation, taxes, payments, wages, energy crisis and stuff... Government have wanted to apply expansionary monetary policy via printing money but LM is permanently going to the left because of inflation. Therefore AD is going to right to left, left to right, right to left in order and Continually. Thus, they didn't get what they wanted and caused wealth loss because supply moved to left.

[@nyb3894]

Inflation from landlord greed

[@js312]

hey, lets throw trillions into the economy. Oh what inflation happening, wtf is that?

[@LVPVSco]

Supply hasn't gone down for oil and gas, demand has gone down due to international relations and policy changes. The demand is technically there, but governments backing the war have chosen to synthetically substitute goods at higher prices, sending the cost down the road to the consumer. Inflation is unnecessary as the Milton Friedman would suggest, government's rapid spending or in this case (excess spending), between aid and increase in price of commodities means that inflation is a necessity evil that they are incorporating in their policies. The choice to not buy certain products or in such a unilateral way of boycotting goods from producers, is a self inflicted causation. Proof that globalisation is a much bigger issue that we first realised, receiving cheaper products to allow people to have stronger purchasing power has always was an idealistic approach but it isn't sustainable for the long term. Specifically because there is so much competition and with popularism being the main driver in politics in our current society, people tend to vote on who they like not what they can achieve. This self righteous mentality actually is just a projection of selfishness, with a nice big pat on the back for people to say I did my bit.