Transmission mechanisms of a country's inflation to other countriesAny inflation problem in a major economy has a spillover effect on other countries. This round of global inflation has a feature markedly different from the earlier episodes. The current round of global inflation hit two commodities particularly hard, energy and food. It should be noted that monetary policies help attenuate the demand side of inflation and minimize imported inflation. The US inflation has become everyone's problem, and how to mitigate its adverse impact is a test for their economic managers.

Source: Manila Times May 15, 2022 06:09 UTC