To clarify what I mean, this current inflationary period is being caused by transient supply disruptions.
Not at all. It’s caused by companies, especially food companies, thinking they can get away with price-gouging. Ukraine doesn’t export nearly as much wheat any more, however a) that doesn’t mean that pasta should get more expensive as Ukraine grows soft, not hard, wheat and b) speaking about the EU, we’re more than self-sufficient when it comes to soft wheat and, by and large, didn’t import from Ukraine, or anyone, for that matter. Hence also why re-organising logistics to ship Ukrainian grain to the EU to then ship onwards was not at all easy to set up.
Gas also isn’t really an issue any more. What might be a valid point is costs due to companies diversifying everything, but that’s the good kind of costs.
Their recession following the global financial crisis lasted longer than other advanced economies
…because too few member states have bouncing back from crises down as well as Germany does. It’s not a secret how we’re doing it but other states don’t seem to get that with a central bank focussed on price stability, you have to have some policies in place. Things like having a Kurzarbeit regime should probably get written into the Eurozone accession criteria because certain countries still seem to be in the “we’re going to inflate ourselves out of the situation” mindset which of course won’t work if you can’t inflate.
Not at all. It’s caused by companies, especially food companies, thinking they can get away with price-gouging. Ukraine doesn’t export nearly as much wheat any more, however a) that doesn’t mean that pasta should get more expensive as Ukraine grows soft, not hard, wheat and b) speaking about the EU, we’re more than self-sufficient when it comes to soft wheat and, by and large, didn’t import from Ukraine, or anyone, for that matter. Hence also why re-organising logistics to ship Ukrainian grain to the EU to then ship onwards was not at all easy to set up.
Gas also isn’t really an issue any more. What might be a valid point is costs due to companies diversifying everything, but that’s the good kind of costs.
…because too few member states have bouncing back from crises down as well as Germany does. It’s not a secret how we’re doing it but other states don’t seem to get that with a central bank focussed on price stability, you have to have some policies in place. Things like having a Kurzarbeit regime should probably get written into the Eurozone accession criteria because certain countries still seem to be in the “we’re going to inflate ourselves out of the situation” mindset which of course won’t work if you can’t inflate.