LIMS explained that global inflation is due to the increase in money supply worldwide following COVID lockdowns, on top of quantitative easing policies. To make matters worse, the war on Ukraine caused an issue with the world’s energy supply. Heating, cooling, and transportation costs have been on the rise. The US dollar was able to strengthen against other currencies due to the Federal Reserve’s ability to increase interest rates. The European Central Bank on the other hand, maintained low interest rates, and could not restrict the money supply, due to the critical situation in Europe. Interest rate differential and security risks explain the historical depreciation of the euro. 

LIMS Media Interviews: 

• An Economist: United States Has Become Safe Haven For Capital And the World Economy Has Entered A Recession, October 9, 2022: Arb Majalla, Article AR