Wednesday, 17 August, 2022

How inflation changes the world, affects 4 Ps

  • Sun Online Desk
  • 4th July, 2022 10:31:40 AM
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How inflation changes the world, affects 4 Ps

The fire of inflation has raged through the world posing multifaceted threats to the social, economic, political and personal entities.

Inflation is more than incapacity of purchasing power. It can give rise to dictators like Hitler. It can also force a country into irrelevance like Venezuela. Since world battles record inflation, Palki Sharma of the WION focusses on the 4 ‘P’s:

In 1993, Germany economy was in shambles. The war left the country battered. The Treaty of Versailles required Germany to pay 132b goldmarks ($31.4b). The country was in debt. It became demoralised. There was social unrest. Two successive rounds of election failed to restore stability resulting in hyperinflation, unemployment and uncertainty. Adolf Hitler of Nazi Party exploited the crises. On January 30, 1933, he became Chancellor of Germany. He usurped power and turned new leader of the country.  

The dictum is that economic debacle has power to change the direction of the history.

Throughout the weeks, the stocks are in downtrend, currencies are devaluing, fuels are being expensive, and prices of basic commodities are shooting up.

An ordinary connotation of the inflation does not help understand the situation. So, it should be interpreted in terms of the world order, reshaping power of democracies, authoritarian regimes and constitutional monarchies.

Today, the world is interconnected giving a room for free flow of economy.

Inflation affects 4 Ps: policies, politics, priorities and poverties.