IDEAS home Printed from https://ideas.repec.org/a/nos/voprec/y2021id3687.html
   My bibliography  Save this article

Shortageflation 3.0: War economy — state socialism—pandemic crisis

Author

Listed:
  • G. W. Kolodko

Abstract

The crisis caused by the coronavirus pandemic has prompted governments and central banks to take unorthodox measures aimed at protecting the standard of living of people and sustaining the production and service activities of companies. The policy of aggressively rising the supply of money has entailed a significant increase in the budget deficit and public debt. It is important to consider the extent of its impact on the escalation of inflation processes and to formulate suggestions regarding the economic policy. Inflation is already higher than the official indicators show it, because it is partly suppressed. The increase in the general price level does not fully reflect the actual inflation rate. We are dealing with shortageflation — the simultaneous occurrence of price inflation and repressed inflation accompanied by shortages. It is methodologically interesting to compare this current phenomenon, 3.0, with the suppression of inflation in the war economy, 1.0, and in the economies of state socialism, 2.0. Such comparisons highlight not only the similarities of these processes but also the differences resulting from the specificity of responses of households and businesses. This article discusses five channels of unloading excessive savings, indicating the most beneficial ones from the point of view of sustainable economic development in the post-pandemic future. It is particularly important to prompt the conversion of compulsory savings into voluntary ones and at the same time to stimulate the transformation of inflationary monetary reserves into the effective demand expanding the use of existing production capacities and investments in creating new capacities.

Suggested Citation

  • G. W. Kolodko, 2021. "Shortageflation 3.0: War economy — state socialism—pandemic crisis," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
  • Handle: RePEc:nos:voprec:y:2021:id:3687
    DOI: 10.32609/0042-8736-2021-10-5-26
    as

    Download full text from publisher

    File URL: https://www.vopreco.ru/jour/article/viewFile/3687/2406
    Download Restriction: no

    File URL: https://libkey.io/10.32609/0042-8736-2021-10-5-26?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Unel, Fatma Bunyan & Yalpir, Sukran, 2023. "Sustainable tax system design for use of mass real estate appraisal in land management," Land Use Policy, Elsevier, vol. 131(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nos:voprec:y:2021:id:3687. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: NEICON (email available below). General contact details of provider: https://www.vopreco.ru .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.