Inflation, Global Financial Crisis, and COVID-19 Pandemic

13 Pages Posted: 10 Aug 2022

Date Written: August 10, 2022


In the years 2021-2022, world inflation has drastically increased. The analyses of the main characteristics of the 2007-2009 financial crisis and of the economic crisis caused by COVID-19 pandemic as well as of the rise in total debt of the non-financial sector suggest that the growth of inflation was triggered by excessive debt growth of the government sector in 2020-2021. In that period, the main goal of the debt growth of the government sector was to finance the aid schemes limiting the negative effects of the COVID-19 pandemic. These aid programmes were indispensable to avoid deep and long-term global economic recession, however their value was too high to keep inflation in the world under control. Fiscal intervention of particular countries should be co-ordinated internationally, as the cumulative result of the operations undertaken by particular states might have detrimental effect globally.

Keywords: inflation, COVID-19, financial crisis, fiscal policy, public debt, private debt

JEL Classification: E31, E51, H12, H30

Suggested Citation

Jałtuszyk, Grzegorz, Inflation, Global Financial Crisis, and COVID-19 Pandemic (August 10, 2022). Available at SSRN: or

Grzegorz Jałtuszyk (Contact Author)

SGH Warsaw School of Economics ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554

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