Present high inflation globally can be attributed to the US and other Western economies that have misgoverned internally while sowing discord and bullying externally. China’s low inflation acts as a significant “stabilizer” for global prices /Global Times, Apr. 24/.
In the beginning of the 1970s, the US Grand Strategy started a decade by some major political decisions aiming for reigning in Germany and Japan. All the decisions resulted in a tormented, high-inflation, low growth decade for the global economy. The US economy suffered huge losses, finally Paul Volker defeated inflation. The price-tag for America was even higher than the damage caused by the US decisions for the economic rivals.
Since the outbreak of the pandemic we have been re-running the 1970s. In the 2020s the patterns seem to be similar to the 70s, meaning that economic side-effects will be much higher than anyone imagined of.
Be careful what you dream of.
Governor Matolcsy, MNB, the Central Bank of Hungary