Causes and Consequences of Inflation in the World Economy

Abstract

This article contains a comprehensive analysis of the mechanisms of formation of inflation processes observed worldwide, the global economic and geopolitical factors that strengthen them, as well as the impact of inflation on macroeconomic stability. The study deeply studies the role of processes such as price fluctuations in raw materials markets, disruptions in supply chains, increased logistics costs, expansionary monetary policy, and supply-demand imbalances in increasing inflationary pressure. Also, a scientific analysis was conducted in such areas as the consequences of global inflation, such as a decrease in real incomes, destabilization of exchange rates, weakening of investment activity, and increased social tensions. At the end of the study, proposals were developed to curb inflation.