Inflation in the US During Covid-19 Crisis: Cause, Current Status, and Moving Forward

DOI

10.2991/assehr.k.211209.384How to use a DOI?

Keywords

Inflation; Covid-19; the US; Interest rates; global supply chain

Abstract

This paper makes a through-out interpretation of the inflation hikes witnessed in the United States during the Covid-19 pandemic crisis. This paper incorporated economic theories and data in explaining the economic phenomenon during the pandemic crisis and predicting the future trend of inflation. The analysis of the cause of the inflation included the relationship of inflation with the domestic demand and the world supply. An interpretation of the current moves made by the central bank and the government, including the repo rate and the government messages, is provided. The examination indicates that changes in the repo rate might have been effective in contracting the creation of new loans, but the effectiveness of the government talks remained ungrounded. This paper also highlights the pros and cons of the current inflation level throughout this paper. The prediction of the future trend of inflation acknowledges various possibilities, including the recovery of the global supply, the change in foreign trade policies, and the opinion of the market. As the situation of the Covid crisis is still evolving, I can hardly make a precise call on the future trend but analyze and acknowledge all the possible scenarios listed, but the analysis may provide a comprehensive and critical assessment of the current inflation in the US and may reveal the critical conditions on which the future trend of inflation depends.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Chenyu Li
PY  - 2021
DA  - 2021/12/15
TI  - Inflation in the US During Covid-19 Crisis: Cause, Current Status, and Moving Forward
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2346
EP  - 2354
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.384
DO  - 10.2991/assehr.k.211209.384
ID  - Li2021
ER  -