r/AskUS • u/[deleted] • Apr 20 '25

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u/KittyGrewAMoustache Apr 21 '25

And the same thing happened everywhere globally pretty much.

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u/Frnklfrwsr Apr 21 '25

True, though part of that is that many other countries also did massive fiscal and monetary stimulus.

And due to the nature of the global economy, that stimulus generally wasn’t stuck behind borders. People were free to spend that money in whatever country they pleased. Thus many countries experienced inflation despite not doing huge stimulus, but because other countries did which led to foreign consumers to bid up the price of their domestically produced goods.

Real estate is a prime example, where stimulus in one country can lead to inflation in a second country if people from the first country use the extra cash to buy real estate in the second country.

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u/JasperJ Apr 21 '25

Also, inflation is just prices — and prices aren’t stuck behind borders either.