The resurgence of inflation and economic outlook in six advanced economies following the Covid-19 pandemic: a comparative approach to the 2008 financial crisis.

Abstract

Crises are a part of economic cycles mainly characterized by structural changes in different economic sectors. The world economy experienced a recession in the Gross Domestic Product of 1.3% and 3.3%, in 2008 and 2020, respectively, according to the World Bank. Inflation as an economic process consists of a generalized and constant rise of prices, measured by the percent variation of the Consumer Price Index. Frequently, the term inflation is associated with developing nations and, to a lesser degree, with advanced or developed economies, except for those countries which have experienced constant devaluation of their currencies or some structural changes. “Inflation is, always and everywhere, a monetary phenomenon in the sense that it only is and can be produced due to a faster increase in the amount of money than that of production.” This situation was accompanied by a slackening of the inflation rate, which was at an average of 0.5% in 2009 for the aforementioned economies. It is worth noting that, despite
the implementation of asset sales according to QE, the impact on prices was unequal in some.