Epidemic, Fragmentation, Inflation(4)

Epidemic, fragmentation, inflation(4)

Chen Kaifeng, chief economist of U.S. Huisheng Financial Management Company, said that the epidemic has caused a rapid widening of the gap between the rich and the poor between developed and developing economies and within each economy. Leonid Grigoriev, a professor at the Russian National Higher School of Economics, also believes that the world economy has become more unbalanced after the impact of the epidemic, and developing economies have been left further behind.

Inflation is rising

Since the beginning of this year, inflationary pressures in major global economies have generally increased. Among them, inflationary pressures in the United States have been particularly prominent. In June, the US Consumer Price Index (CPI) increased by 5.4% year-on-year, the largest year-on-year increase since 2008.

Economists believe that the recent rise in global inflation is mainly affected by the following factors: developed economies led by the United States have adopted large-scale fiscal stimulus and loose monetary policies in response to the impact of the epidemic, resulting in severe global liquidity; Resident consumption rebounded rapidly due to the easing, but the supply bottleneck caused by the epidemic caused insufficient supply of goods and services, and the imbalance between supply and demand further pushed up prices; the Federal Reserve and the European Central Bank adjusted monetary policy frameworks to increase tolerance for inflation, and to a certain extent. Higher inflation expectations.