Inflation challenges of the pandemic period and sanctions. Lessons for the future

Abstract

The inflation dynamics is a key factor in macroeconomic and social stability, having a direct impact on all structural proportions in the economy and the well-being of the population. This is especially noticeable during periods of acute shocks and crises. This article is an attempt to understand the inflationary consequences of the recent non-economic crisis associated with the coronavirus pandemic. The global nature of this crisis, as well as its impact on all sectors of the economy and spheres of economic relations, provide rich material for the analysis. The geopolitical aggravation and large-scale sanctions against Russia in 2022 have become a new shock for the entire economic system, creating a trail of new inflationary effects at the global level and especially within Russia. The presence of a significant number of similarities between the two crises retains the relevance of a rigorous analysis of the coronacrisis and its lessons, despite the radical change in the situation due to the onset of the sanctions crisis.