Inflationary pressure

Fiscal expansion increased inflation in the developed world

It’s been over four years since the pandemic began spreading across the world. The first lockdown in India was imposed on March 24, 2020. Restrictions on mobility in practically every part of the world to contain the spread of the virus severely impacted output and employment. As a result, governments and central banks adopted policies to support economic activities and minimise the damage. An improved understanding of the virus and quick availability of vaccines at scale helped revive economic activities. Global recovery from the pandemic has been far stronger and more resilient than initially anticipated, partly because of the strong