Market Review and Trends
Demand-supply lag: The real cause behind inflation right now
By The Fifth Person  •  July 22, 2022
Today I am going to let you in on something that many news sources have missed about the real cause behind the current rise in inflation. To do this we have to go back to the pre-pandemic period towards the end of 2019. The economy was buzzing along doing its thing. People were generally happy and prosperous. Then came COVID-19 and the corresponding fear, lockdowns, and restrictions. The stock market tanked and there was real fear of a possible depression as consumer sentiment was totally anaemic. There was so much panic worldwide that the Federal Reserve and central banks around the world reacted accordingly by slashing interest rates aggressively to prevent an economic meltdown. The Fed used quantitative easing by printing money. In simple words, they flooded the market with cheap money. Now, back to the present day. The Fed is now barking about the excessive demand resulting in the excessively high...
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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