Is Inflation Finally Coming To an End? | Economics Explained

Inflation has been perhaps the single biggest issue facing the global economy over the past year and has proven far more persistent than most people originally assumed. But with central banks around the world all raising interest rates, will we finally see inflation go back down to more normal levels?

0:00 - 2:00 Intro
2:01 - 3:03 Rocket Money
3:04 - 4:25 Raisin interest rates
4:26 - 6:22 Stimulative effect of inflation
6:23 - 7:55 Cost of inflation
7:56 - 9:50 Price stickiness
9:51 Slow reduction of inflation

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[alexsteven.m]

Crash! Crash! Recession! Inflation! It’s getting depressing. I have about $100k in emergency fund and I have been seeing good news about the stock market and would like to gain from that since I can’t let my savings be corroded by inflation. What stocks should I into as a newbie to safely grow my money.

[daniellecooper]

According to the owner of the company I work for, this single quarter has been more profitable than the last 6 combined, all thanks to "inflation." Which is to say, he heard there was inflation and jacked our prices by 25%, then blamed inflation. I have to assume this is not uncommon.

[audigex]

The problem with the idea of "People will spend more if they expect inflation" is that it only really applies to luxuries and discretionary spending. If I expect the price of a car or iPhone to increase then sure, I'll buy them ASAP - but if I'm expecting food and energy increases then I'm going to keep hold of as much cash as possible to pay for those necessities

[rt.judgejones]

Individuals set aside cash when they think we are going towards a downturn, which mean less cash circumventing the economy, which really can prompt a downturn or exacerbate it.

[scottarmstrong]

Since Biden took office, there seem to have been more unfavorable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.

[Mr_M_History]

The real question is will the next lego star wars account for all this inflation and cap beyond 4 billion?

[im_that_guy]

Inflation may come down, problem is the cost of living won't.

[nathansmith]

We are already in the big crash, Inflation is a
catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated.If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.

[bgiv]

"Businesses and landlords are less likely to adjust prices downward than upward unless there's competition in their market...which there currently isn't."
That's just the nice way to say that price gouging is rampant.

[flavoursofsound]

Looming recessions are kinda paradoxical - If people except things to take a turn, then they will take steps to prepare themselves, but by doing so they improve conditions in the market

[handlemonium]

Well if "sticky prices" are an issue than higher-than-optimal inflation is even stickier.

So either central banks will have to maintain elevated interest rates for the next couple years or they're going to need to keep inching rates higher if they want to tame inflation faster which might put us into a mild recession starting late next year or 2024-2025.

[Coreyman]

This was very informative. Thank you for not going the doom and gloom route. You were very reasonable in your presentation

[TheSmokingCheddar]

So, we're looking at a potential globally controlled deflation? In an attempt to beat out a recession? (I have monkey brain and I am trying to learn)
Also, if you do read this, thanks for putting out these videos, you and a few other YT economists have helped me understand things. I think. I'm still learning. It's ashame that this availability to information and analysis wasn't available when I was at highschool 20 years ago. I might have passed my economics class if it was.

[aussiepressconferences.]

Prices ‘should’ fall soon but there’s a global lack of supply so food, fertiliser, gas and grain are always going to cost more until the war in Europe ends and even then it will take years to recover.

[chepulis]

What do you think on the inflation situation in eastern europe? War aside, do you think there's hope for some relief with how well the US is doing? Kinda tired of the >20% and watching food prices climbing. You haven't done a UA/RU video in a while, and i think the general eastern europe situation merits attention.

[Snoop_Dugg]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered" - Thomas Jefferson

Thank you for not stooping down to fear mongering and/or only reporting bad news.
I'm very glad to learn that we're beating inflation faster than anticipated. Keep these kind of videos coming!

[rsmith]

The corporate expectation of enhanced profit is an awful strong headwind against reducing inflation .

[gdehoyos]

The fact that you don’t make sensationalist pessimistic YouTube pieces is the reason it’ll always find your YouTube to see what trends and patterns are arising. Keep up the honest videos 🤘

[svendejong]

Great video! Could you tackle the potential economic impact of AI in a future video?