kathimerini.gr
Inflation's Political Fallout
This article discusses the effects of recent inflation on the political landscape of developed economies, exploring voter behavior, economic indicators, and potential shifts in political power.
Greek
Greece
PoliticsEconomyElectionsLabour MarketEnergy SecurityInflationConsumerism
OecdFinancial TimesCapital EconomicsUbsInfratest Dimap
Donald TrumpRobert FordPaul DalesPaul DonovanIsabella WeberSara Wagenknecht
- What were the main causes of the recent surge in inflation?
- The recent inflation, stemming from the pandemic, supply chain disruptions, and energy crisis, significantly impacted consumer well-being globally, forcing central banks to adopt restrictive monetary policies and causing widespread voter discontent.
- How did inflation affect political outcomes in developed countries?
- In several developed economies, including the US, UK, and Japan, voter dissatisfaction with inflation significantly influenced political outcomes, with the impact extending to upcoming elections in countries like Germany and Canada.
- How is the impact of inflation evident in Germany's political landscape?
- The impact of inflation is evident in countries like Germany, where the far-right and far-left parties are gaining popularity due to public dissatisfaction with the rising cost of living, indicating a potential shift in the political landscape.
- What is the current state of inflation and consumer confidence in OECD countries?
- While inflation is decreasing in OECD countries, consumer confidence remains low, with real household incomes only recently surpassing pre-pandemic levels; this is because food prices remain around 50% higher in approximately half of OECD countries.
- Why does inflation continue to impact political systems even after price stabilization?
- Economists and political scientists suggest that high inflation significantly affects voter behavior and political outcomes, even after prices stabilize because the memory of high prices persists for extended periods and erode's public trust in governments.