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

26/10/2022 17 min

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

Episode Synopsis

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?