Stocks have been on a roller coaster as the Fed Chair, Jerome Powell talks about upcoming monetary policies. Historically, developed nations have been facing less of an inflation than developing countries. I often get asked, why this may be the case. In simple terms, inflation is linked with production; production is linked with automation. Commodity prices stay in check as long as there is enough production chasing the supply of money floating in the economy. As soon as the productivity per dollar goes down, the same dollar now has reduced buying power.
