Blog: Inflation - What's Different this Time. Part 2

In Part 1 we discussed the collapse of the global supply chain accompanied by normal demand as a primary cause of this era's high inflation. The normal demand was continued due primarily to fiscal and monetary stimulus by most countries. Supply driven inflation is difficult to control since monetary and fiscal policy affect demand, not supply. But keeping demand up by basically giving people money to spend when they couldn't work, did drive inflation. But it wasn't just a local country problem. This time it was global.