In-depth Analysis

The Boogeyman returns. The Inflation of 2021 vs 2008 explained

It can send shockwaves throughout the global markets, cripple economies and make our everyday life a tad bit harder. On paper it is not a complicated matter, but once you get to the bottom of it, you’ll see that it’s crazy complicated.

The inflation. What is it that scares people so much?

The ghost of crisis past still haunt us today

In 2008 the world’s top economies were forced to save their financial systems from collapse, bailing out banks and other financial institutions with rescue packages worth trillions of dollars.

After 2009, despite the absence of significant rising prices, that could justify its implementation, austerity became a popular way of countering financial crises, and was adopted across the world.

Fast forward to 2021. As the Covid-19 pandemic spread in the spring of 2020, it hit particularly hard businesses of all sizes. The unemployment rate in America alone shot up to nearly 15% from about 3.5% in February 2020. Stimulus packages were created to counter the ongoing increase in prices.

Were those measure enough?

 

Watch our video to learn more about inflation, and how the current one differs from the events of 2008.

 

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