Exploring the Impact of COVID-19 on Inflation Trends: An Economic Analysis
Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates
For This or a Similar Paper Click To Order Now
Assignment Instructions:
I) Research a topic below (choose one of three):
<
a. Inflation Trends
<
i. How COVID-19 May Be Affecting Inflation
<
b. People and Places
<
i. Older Workers Accounted for All Net Employment Growth in Past 20 Years
<
c. Economic and Monetary Policy Explainers
<
i. Externalities: It’s What Pandemics, Pollution and Puppies Have in Common
<
II) Write a 1–2-page summary on how it applies to economics, be as specific as possible.
<
III) Please summarize a strong conclusion that incorporates DEEP critical reflection.
<
IV) PLEASE cite in your paper – APA style.
<
V) Submit to Brightspace by Friday April 21,2023, 11:59 pm
<
<
How To Work On This Assignment(Example Essay/Draft)
Global economic trends, especially inflation trends, have been significantly impacted by the COVID-19 epidemic. A dearth of supplies and higher manufacturing costs as a result of lockdown measures and supply chain disruptions brought on by the epidemic have raised the cost of goods and services. Additionally, the economy has received a record quantity of liquidity because to central banks’ unprecedented monetary stimulus, raising the risk of inflation. In this essay, the causes of the spike in inflation are examined, including the pandemic’s impact on supply chains, pent-up consumer demand, and the expansionary monetary policy.
Due to the epidemic, there are now severe shortages of raw resources, intermediate items, and final commodities throughout the world. Increased production expenses as a result of these interruptions have been passed on to customers in the form of higher prices. For instance, due to a lack of supply, the cost of lumber, steel, and other building supplies has surged, driving up the price of homes in the process.
Due to many people being confined to their homes and unable to spend on discretionary products like travel and entertainment, the pandemic has also resulted in pent-up consumer demand. This suppressed demand has been released as the economy has recovered, increasing demand for both products and services. The supply chain has been under stress as a result of the increasing demand, which has made supply shortages worse and increased inflation.
Finally, the economy has received a large infusion of cash as a result of central banks’ expansionary monetary policies. Lower interest rates as a result of this stimulated investment and borrowing but also increased inflationary pressures. The rise in asset prices, including those of stocks and real estate, has widened the wealth gap and stoked concerns about the stability of the financial system. This is a result of the expansionary monetary policy.
III) To sum up, the COVID-19 pandemic has had a significant impact on inflation patterns and is likely to continue to do so in the future. In order to properly manage the inflationary pressures, policymakers must remain watchful and take the necessary actions. To maintain the stability of the economy, this entails putting into place specific fiscal policies, managing interest rates, and keeping an eye on supply chain disruptions. The main causes of inflation, such as supply chain disruptions and wealth inequality, must also be addressed through long-term structural reforms. A thorough critical analysis of the economic system and its effects on people and the environment must serve as the foundation for these reforms.
References (IV)
O. Blanchard, 2021. The Worrying Return of Inflation. Global Financial Institutions. https://www.imf.org/en/Publications/fintech-notes/Issues/2021/09/15/inflation-the-worrying-return
Gopi Nath Gopinath. The most urgent economic problem of our day is inflation. Global Financial Institutions. https://blogs.imf.org/2021/07/20/inflation-the-most-pressing-economic-challenge-of-our-time/
V) Cite sources using the APA style:
O. Blanchard, 2021. The Worrying Return of Inflation. Global Financial Institutions. https://www.imf.org/en/Publications/fintech-notes/Issues/2021/09/15/inflation-the-worrying-return
Gopi Nath Gopinath. The most urgent economic problem of our day is inflation. Global Financial Institutions. https://blogs.imf.org/2021/07/20/inflation-the-most-pressing-economic-challenge-of-our-time/
Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates