Present high inflation globally can be attributed to the U. S. and other Western economies that have misgoverned internally, while sowing discord and bullying externally, while China’s low inflation acts as a significant “stabilizer” for global prices - said György Matolcsy, governor of the National Bank of Hungary, reacting to a recent Global Times article.
In the early 1970s, America's Grand Strategy started a decade by some major political decisions aiming for reigning in Germany and Japan - Matolcsy said in a post published on the central bank"s Facebook page. The decisions made resulted in a tormented, high-inflation, low-growth decade for the global economy, the U. S. economy suffered huge losses, until finally Paul Volker defeated inflation, and the price-tag for America was even higher than the damage caused by the US decisions for the economic rivals - he said.
Since the outbreak of the pandemic we have been re-running the 1970s. In the 2020s the patterns seem to be similar to the 70s, meaning that economic side-effects will be much higher than anyone imagined of - he added. "Be careful what you dream of" - concluded the central banker.
