Shortageflation 3.0

War economy – State socialism – Pandemic crisis

Dados Bibliográficos

ID21282018
AutoresGrzegorz W Kolodko (0000-0001-7015-5612, Kozminski University, autor correspondente)
Ano2021
Volume71
FascículoS1
Páginas13-34
Data de publicação2021-11-25
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoActa Oeconomica (JOURNAL)
Identificadores do periódicoISSN: 0001-6373 • E-ISSN: 1588-2659
EditoraAkademiai Kiado Zrt. (PUBLISHER • HU)
DOI10.1556/032.2021.00027
OpenAlexW4226047612
IdiomaEN
Referências citadas29

The crisis caused by the coronavirus pandemic has prompted governments and central banks to take unorthodox measures aimed at protecting the standard of living of people and sustaining the production and service activities of companies. The policy of aggressively increasing the supply of money has entailed a significant rise in the budget deficit and public debt. It is important to consider the extent of its impact on the escalation of inflation processes and to formulate suggestions regarding the economic policy. Inflation is already higher than the official indicators show it, because it is partly suppressed. The increase in the general price level does not fully reflect the actual inflation rate. We are dealing with shortageflation – the simultaneous occurrence of price inflation and repressed inflation accompanied by shortages. It is methodologically interesting to compare this current phenomenon, 3.0, with the suppression of inflation in the war economy, 1.0, and in the economies of state socialism, 2.0. Such comparisons highlight not only the similarities of these processes but also the differences resulting from the specificity of responses of households and businesses. This paper discusses five channels of unloading excessive savings, indicating the most beneficial ones from the point of view of sustainable economic development in the post-pandemic future. It is particularly important to prompt the conversion of compulsory savings into voluntary savings, and at the same time, to stimulate the transformation of the inflationary monetary reserves into the effective demand expanding the use of existing production capacities and investments creating new capacities

Communism · Debt · Deficit spending · Economic policy · Economics · Inflation (cosmology) · Macroeconomics · Market economy · Monetary economics · Monetary policy · Politics · Socialism · Economic Issues in Ukraine · Global Economic and Social Development · Post-Communist Economic and Political Transition