The recent global economic crisis has many people asking “what is causing inflation in the US?”
With unemployment topping out over 10%, it appears that corporations and individuals are being forced to tighten their belts, cutting back on frivolous expenses, and make cuts to the workforce in an attempt to survive the current economic climate. In order to combat this, central banks all over the world have been tightening their belts, raising interest rates and even taking some measures deal with debt that may no longer be worth it.
So, what exactly is causing inflation in the US?
With the recent global financial crisis, investors all over the world have become less confident in banks, which has been said to be leading to a decline in lending throughout the globe. With this decline in lending, businesses are finding it more difficult to get loans for major purchases, like a new car or home. Even business loans are becoming more difficult to secure, with banks requiring increased collateral and larger down payment amounts in order to get a loan approved.