- May 22, 2022 10:25 am GMT
The world situation points to a new scale of relative prices as a result of the inflation that contaminated the economies around the globe.
There is one worrying aspect. The issuance of paper money. Governments issue more money and thus "face" the general increase in costs.
Evidently, this solution is the easiest in the short term and the one that causes the most damage in the medium/long terms with growing poverty and economic recession.
The alternative that would be desirable in the short term points to a severe reduction in the costs of the public sector that is paid for with taxpayers' money. To balance the budget and make possible a resumption that would maintain the purchasing power of the population.
But, unfortunately, the prevailing thinking is linked to the very short term. And turning the crank of money printing is irresistible.
The challenge in the electric power sectors around the globe might be how does this "money printing" situation will affect regulated rates and deregulated power prices?
This question will gain importance in robust decision making processes.
And so we move towards a potential disruption. And the most challenging: there will probably be no control that brings security and predictability, so necessary for humanity.
Are you preparing for this scenario?
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