Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline
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Major fears are sweeping into Israel’s economyInflation affects most states at the same time, primarily because strong economic ties have developed between them due to the fact that not a single modern state is able to fully ensure the production of all the necessary goods and products for the normal existence and development of its economy. Therefore, a certain specialization has developed in the world depending on climate, soil, natural resources, concentration of production capacities, and so on. Failure in one part of this specialization automatically causes failures in related production and supply. Well, significant cataclysms and phenomena such as the coronavirus pandemic generally hit the economies of many states at once. All this leads to world inflation after some time.
I agree since countries do have financial links in terms of trade and commerce and this would result to an effect to the overall economy of one to other since the specific economic factors that driven the rise of inflation in one country could have a domino effect on the economy of the others. Also, we can never deny that all countries are hit by the pandemic and some economies were hit hard causing some economic issues that is still felt up to this day. It may seem that pandemic is over, but we can still expect to see its effect on each country's economy and how would affect others.