Derec
Contributor
Few things are monocausal. Inflation is not monocausal. To ignore the role fiscal and monetary policy have played would be foolish.What is causing this inflation is clearly global, and the thing that makes such global inflation happen is an increasing cost of energy.
Russia, or rather the West's (quite justified) response to Russia's invasion of Ukraine, has been part of the causation only relatively recently. It really started in 2020. Pandemic happened, oil demand disappeared, oil price crashed. Oil futures even went negative briefly because the world was running out of storage for all the oil that was getting pumped but not burned. So oil projects get put on hold, oil workers get laid off, and when the demand picks up, you have too little supply and prices shoot up.It is not something Biden could possibly be causing. It is rather something RUSSIA is causing.
But again, that is not the whole picture.
The monetary policy: interest rates should have been increased much sooner.
The fiscal policy: an enormous amount of federal spending to respond to the Pandemic. Some of it necessary for sure, but much of it ill-conceived and let run way too long. Plus new programs like $400G in student loan cancellation.