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Inflation is high 'cause China. We are more interconnected and globalized than anytime in the past, thus the past is not a good model. China is still in lockdo

by anonu 4y ago

Inflation is high 'cause China. We are more interconnected and globalized than anytime in the past, thus the past is not a good model. China is still in lockdown and their output isn't as high as pre-pandemic levels. Everything China makes pervades into everything we do in developed society. From high-tech chips to low-tech plastic stuffs. Until China decides to open back up, prices will continue to increase. And until then rates will continue to go up to try to incentivize people to save. I see this alleviating in 2nd half of 2022, thanks to China relaxing Covid restrictions.

ericmay 4y ago
That’s certainly one of many factors but the other big one is energy cost due to Russia’s invasion of Ukraine and subsequent sanctions levied by major economies on Russian energy exports.
DiogenesKynikos 4y ago
> China is still in lockdown and their output isn't as high as pre-pandemic levels. The vast majority of China is not in lockdown, and Chinese output is above pre-pandemic levels. China has had one of the highest growth rates of any large economy since the start of the pandemic (2.3% in 2020, when most large economies shrank, and 8.1% in 2021).