Is government spending to blame for today’s inflation problem?

Is government spending to blame for today’s inflation problem?

How did the economy catch COVID-19

26/10/2022 12:10AM

Episode Synopsis "Is government spending to blame for today’s inflation problem?"

As mentioned in the previous article, an increase in government spending can indeed lead to higher prices. This is especially true when that money is spent on what Economists call ‘consumption products’ (short-lived goods and services). So, was the spending of our governments during the pandemic lockdown(s) to blame for the high inflation we have seen since the reopening of the economy?

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