Economy after the pandemic. What should Ukraine do?

Rising inflation in Western economies puts Ukraine in a position to be able to use it properly

Rising inflation in Western economies is unpleasant for various reasons. It exports inflation to other countries, including Ukraine. It forces investors to demand higher returns on debt securities. It introduces an imbalance in the decision-making process of central banks.

Inflation in the US, for example, revolves around 5%, which looks quite unusual for the US economy. But the American economy is quite developed and is able to benefit even from such an unpleasant level of inflation.

Rising prices are a fierce enemy of unemployment. Therefore, the current generation of migrants storming the United States from the south, from countries like Nicaragua, Haiti and Venezuela, will be forced to find regular jobs in the United States, because rising food prices will not allow them to live on savings or social support from the government.

Joe Biden's difficult election victory in 2020 has forced American political scientists to think about the electoral behavior of 30-year-olds. Those are clearly dissatisfied with the state of affairs in the country, to which the government responded with a policy of stimulating mortgage lending. For example, the US Federal Reserve buys $ 120 billion a month from the bond market, including mortgages, to make this type of loan available to Americans at the age at which they usually start a family.

The generation born between the 1980s and the mid-1990s has traditionally held themselves hostage to an old model of capitalism sharpened by aggressively increasing wage savings, so meeting their demand for housing can qualitatively improve both the political situation and electoral sentiment in the world's largest democracies.

The growth of yields on US government bonds is not a very pleasant signal for the world economy.