3 ms·
Why is economic recession equated with reducing inflation? In the 90s Turkey had 100% YoY inflation despite a growing economy. After the fall of the Soviet Uni
by dmitriid 4y ago
Why is economic recession equated with reducing inflation?
In the 90s Turkey had 100% YoY inflation despite a growing economy. After the fall of the Soviet Union many of the former Soviet republics had soaring inflation amidst crippling economic depression.
- tome 4y agoWho's equating? Recessions tend to cause deflationary pressure because people lose their jobs and stop spending as much. That's all, as far as I know.
- dmitriid 4y ago> Who's equating? The title of the article we're commenting on is literally "even global recession won't crush inflation"
- tome 4y agoInteresting, that doesn't read as "equating" to me.
- deleted 4y ago[deleted]
- topspin 4y ago> Who's equating? Please don't gaslight. The entire premise of this Economist writing is that inducing recession by jacking up interest rates isn't the inflation cure-all The Great And The Good are group-thinking it is.
- tome 4y agoSure, a major recession would typically but not always be expected to reduce inflation. That's far from "equating" as I understand the definition of the word. It's surprising but not reality-defying that this one might not, which is why this article is interesting, rather than boring or impossible. And "gaslight"? What?
- skybrian 4y agoThere are multiple possible underlying causes and people are usually talking about one of them. Inflation is usually associated with too much demand (people attempting to buy more), and when that happens the economy is usually pretty good. A recession can happen when the central bank tries hard to fight it. In other cases it's caused by a collapse in supply, which can happen when things are going badly.
- tboyd47 4y agoThe US economic leaders see what they did to so many countries around the world, and their greatest fear is bad karma.