How America Responds to the Inflation Caused by Covid-19

Research Article
Open access

How America Responds to the Inflation Caused by Covid-19

Weiyu Li 1*
  • 1 University of British Columbia    
  • *corresponding author dmzuigao@gmail.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/8/20230294
AEMPS Vol.8
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-43-0
ISBN (Online): 978-1-915371-44-7

Abstract

The Covid-19 pandemic has brought global inflation. Billions of people have been confined to their homes for months, unable to go to work. As an example, in the United States, which has the largest number of Covid-19 confirmed cases, the impact of the epidemic on their economy cannot is a big problem. According to the research, many of them contain the development of inflation by the Covid-19, but few papers research talk about the response of inflation for Covid-19 in U.S. central bank and the company overall. This research could serve as a model for other countries facing inflation. Therefore, this paper will use the background of the United States to explore the causes of inflation, the central bank's strategy, and how inflation reflects the difficulties faced by American companies. This paper mainly uses literature, case, and data analysis methods. Based on this paper, it was found that the fundamental factors of inflation were the imbalance of supply and demand and the break of the supply chain. But because of the Federal Reserve’s initial miscalculation about the duration of the Covid-19, they switched monetary policy from loose to tight in order to curb inflation. And American companies Apple and Amazon are both facing rising costs, labor shortages, and supply chain disruptions, but their solutions are different because of changing consumer preferences.

Keywords:

inflation, Covid-19 pandemic, federal reserve, American companies

Li,W. (2023). How America Responds to the Inflation Caused by Covid-19. Advances in Economics, Management and Political Sciences,8,125-130.
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References

[1]. Zhu M, Xu Z.X, Gong B & Li C.T. (2021) .Global economic Finance in 2022: The Sword of Structural Inflation and the challenge of Central Banks. International Finance Studies(12) ,3-13. doi:10.16475/j.cnki.1006-1029.2021.12.002.

[2]. Li C.D & Zheng F.(2021)"Supply Chain Crisis" in the United States: Short-term Supply-demand Imbalance or Long-term structural Adjustment? Neutralize negative influence. Import and export manager(12), 43-45. doi:CNKI:SUN:SJJD.0.2021-12-018.

[3]. Cachanosky, N., Cutsinger, B. P., Hogan, T. L., Luther, W. J., & Salter, A. W. (2021). The Federal Reserve's response to the COVID-19 contraction: An initial appraisal. Southern economic journal, 87(4), 1152–1174. https://doi.org/10.1002/soej.12498

[4]. Li S.G,Zhang Q.S & Li Y.J.(2022).Trend of development of inflation of United States of America and influence on our country. China's prices (07), 27-30. doi:CNKI:SUN:ZGWJ.0.2022-07-009.

[5]. Huang Z.Z,Liu J & Zhang J.(2021).Analysis of the impact of COVID-19 on Moog's operating results. China's space(05),41-47. doi:CNKI:SUN:ZGHT.0.2021-05-009.

[6]. Meyer, B. H., Prescott, B., & Sheng, X. S. (2022). The impact of the COVID-19 pandemic on business expectations. International journal of forecasting, 38(2), 529–544. https://doi.org/10.1016/j.ijforecast.2021.02.009

[7]. Kif Leswing, How inflation will affect Apple, JUL 1 2022，https://www.cnbc.com/2022/07/01/wealthy-customers-will-help-apple-resist-the-effects-of-inflation.html

[8]. Wang W(2022-02-11).Apple's supply chain worries. China Electronic News,008.

[9]. Annie Palmer，How Amazon managed the coronavirus crisis and came out stronger，Sep 29 2020， https://www.cnbc.com/2020/09/29/how-amazon-managed-the-coronavirus-crisis-and-came-out-stronger.html

[10]. Qu Y.H.(2021).Research on logistics cost from the perspective of international supply chain under the epidemic -- Taking Amazon Logistics as an example. Storage and transportation in China(02),115-117. doi:10.16301/j.cnki.cn12-1204/f.2021.02.045.

Cite this article

Li,W. (2023). How America Responds to the Inflation Caused by Covid-19. Advances in Economics, Management and Political Sciences,8,125-130.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-43-0(Print) / 978-1-915371-44-7(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.8
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Zhu M, Xu Z.X, Gong B & Li C.T. (2021) .Global economic Finance in 2022: The Sword of Structural Inflation and the challenge of Central Banks. International Finance Studies(12) ,3-13. doi:10.16475/j.cnki.1006-1029.2021.12.002.

[2]. Li C.D & Zheng F.(2021)"Supply Chain Crisis" in the United States: Short-term Supply-demand Imbalance or Long-term structural Adjustment? Neutralize negative influence. Import and export manager(12), 43-45. doi:CNKI:SUN:SJJD.0.2021-12-018.

[3]. Cachanosky, N., Cutsinger, B. P., Hogan, T. L., Luther, W. J., & Salter, A. W. (2021). The Federal Reserve's response to the COVID-19 contraction: An initial appraisal. Southern economic journal, 87(4), 1152–1174. https://doi.org/10.1002/soej.12498

[4]. Li S.G,Zhang Q.S & Li Y.J.(2022).Trend of development of inflation of United States of America and influence on our country. China's prices (07), 27-30. doi:CNKI:SUN:ZGWJ.0.2022-07-009.

[5]. Huang Z.Z,Liu J & Zhang J.(2021).Analysis of the impact of COVID-19 on Moog's operating results. China's space(05),41-47. doi:CNKI:SUN:ZGHT.0.2021-05-009.

[6]. Meyer, B. H., Prescott, B., & Sheng, X. S. (2022). The impact of the COVID-19 pandemic on business expectations. International journal of forecasting, 38(2), 529–544. https://doi.org/10.1016/j.ijforecast.2021.02.009

[7]. Kif Leswing, How inflation will affect Apple, JUL 1 2022，https://www.cnbc.com/2022/07/01/wealthy-customers-will-help-apple-resist-the-effects-of-inflation.html

[8]. Wang W(2022-02-11).Apple's supply chain worries. China Electronic News,008.

[9]. Annie Palmer，How Amazon managed the coronavirus crisis and came out stronger，Sep 29 2020， https://www.cnbc.com/2020/09/29/how-amazon-managed-the-coronavirus-crisis-and-came-out-stronger.html

[10]. Qu Y.H.(2021).Research on logistics cost from the perspective of international supply chain under the epidemic -- Taking Amazon Logistics as an example. Storage and transportation in China(02),115-117. doi:10.16301/j.cnki.cn12-1204/f.2021.02.045.

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