US Policies Slowing World Economy

By Jomo Kwame SundaramKUALA LUMPUR, Malaysia, Feb 2 2023 (IPS) Few policymakers ever claim credit for causing stagnation and recessions. Yet, they do so all the time, justifying their actions by some supposedly higher purpose. Now, that higher purpose is checking inflation as if it is the worst option for people today. Many supposed economists make up tall tales that inflation causes economic contraction which ordinary mortals do not know or understand. Jomo Kwame SundaramInflating inflation’s significance Since early 2022, like many others in the world, Americans have been preoccupied with inflation. But official US data show inflation has been slowing since mid-2022. Recent trends since mid-2022 are clear. Inflation is no longer accelerating, but slowing. And for most economists, only accelerating inflation gives cause for concern. Annualized inflation since has only been slightly above the official, but nonetheless arbitrary 2% inflation target of most Western central banks. At its peak, the brief inflationary surge, in the second quarter of last year, undoubtedly reached the “highest (price) levels since the early 1980s” because of the way it is measured. After decades of ‘financialization’, the public and politicians unwittingly support moneyed interests who want to minimize inflation to make the most of their financial assets. War and price Russia’s aggression against Ukraine began last February, with retaliatory sanctions following suit. Both have disru...
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