The COVID-19 Crisis triggered Inflation
The coronavirus crisis allowed demonstrating what had been published in 2010: The inflation is the consequence of social phenomena. It was demonstrated that inflation is a social phenomenon with economic consequences, and not vice-versa. When there is a structural crisis with unforeseeable consequences, societies tend to be driven towards a survival culture. This doesn’t happen in all cultures. Japan is an example where this does not occur.
When there is an economic crisis, and the future is unforeseeable, people naturally focus on surviving. A natural response in shareholder-driven economies is inflation. That is why the COVID-19 crisis triggered inflation.
There are countries that seem to have endemic inflation. In this case, inflation is the consequence of a lack of certainty on the future of social and economic evolution.
In these countries, inflation is frequently used to change the distribution of wealth.
Inflation is a sign of structural social disequilibrium
Inflation is frequently considered an economic problem. But inflation, considering the implicit fundamentals, is an economic, political, and social problem. The functionalist approach to inflation was developed by Peter Belohlavek at The Unicist Research Institute.
Analyzing inflation at its essential level is extremely subtle. The monetary aspects are the observable elements of inflation. Inflation needs to include a monetary aspect to make it possible, and also the supply push and the value disequilibrium.
The existence of a supply push towards inflation is not observable but it can be perceived. But what is very hard to measure is the structural value disequilibrium that generates inflation.
This disequilibrium happens when, for example, there is a price increase in real estate as the consequence of monetary aspects and the pulling of demand, but to such an extent that the values of the properties become unrealistic.
The integration of monetary disequilibrium with cost disequilibrium and value disequilibrium produces inflation that works as a perverse adjustment of the social system.
There will be a presentation of the functionalist approach to inflation on November 22, 2021. Request the document on the “Functionality of Inflation”.
Unicist Press Committee
The Unicist Research Institute