Financial markets are really challenged




The Manila Times

Business Times

FOR many years, it has almost seemed too often if inflation was a theme every six months, but currently, it is a big daily issue, and analyses of the cause of inflation fluctuate widely. I have noticed that more economists now recognize that the explosion in inflation is also due to the economic handling of the Covid-19 crisis. Namely, that in many Western countries, production was shut down, but wages were compensated and, thus, the demand was kept unchanged versus the output that had dropped. It is a real problem to get the production or output up to an adequate level again. British Airways has been hit by several bottlenecks, but one of them is simply trying to find enough employees. The same is the challenge for many other western countries, such as the United States. The US unemployment rate is back to pre-Covid-19 level, which is good, but one of the sources of inflation is that the number of people participating in the labor market has not yet reached the pre-Covid-19 level. Also, the US economy is now the same size as before the ➤Lundgreen’s