276 sats \ 3 replies \ @Lumor 15 Dec 2023 \ on: What Caused the 2022 Recession? econ
As I recall it the inflation picked up at the end of 2021. Power and gas prices specifically.
That's probably about right if you're talking about price inflation. The real inflation was the enormous injection of new money during the 2020 lockdowns. Initially, that manifested in shortages, because prices didn't rise as much as they should have. Eventually, all that new money resulted in higher prices.
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Yeah, price inflation, probably caused by earlier money supply inflation. Felt like media then tried to pin price inflation on Russia/Ukraine which made me take a mental note of my actual direct experience.
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Russia/Ukraine certainly didn't help energy prices (neither did the CIA blowing up the Nord Stream for that matter), but I had a colleague sounding the alarm on energy prices well before Russia invaded. It was already baked in the cake as a result of European green energy production falling way short of projections, which meant Europe had to draw way more natural gas from the global market than anticipated. This also led to an enormous spike in fertilizer prices, btw.
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