🚀 go-pugleaf

In this sense all dictatorships and authoritarian will produce
inflation. It makes sense for sellers and merchants to rise prices so
that people cannot buy as much as they want; that way the moment a war
explodes the merchants and selles have a good stock to begin with. They
are planning in advance for their own welfare (rationally), without
taking into account production costs nor demand...

The same argument applies to generalized crime and criminalized
societies or where police corruption prevales. In this case, besides
the possibility of a disruption in the normal flow of trade and
economic distribution, is the added risk of being robbed. This risk is
expressed in higher prices set by the merchants, for the moment when
and if they are robbed! Again, this is independently of demand and
production costs-business benefits. It is the future expectation of
problems what has an effect on current price setting strategies. So,
the nore a society is stable and tehre is certainty through safe laws,
the more stable is inflation. IN this sense, interest rate and exchange
rate strategies would have little effect, as the economic mechanism
generating inflation (distorted rising in prices) occurs at the level
of distributors, wholesale retailers and final stores (each one can
experience a different risk-uncertainty, which will determine the rate
at which they rise tehir proces as a n affecte of future expectations).
It can be expected that in the presence of crime grocey stores will
have higher prices, while in the case of war and secession, it will be
intermediarioes who will rise their prices in a higher rate than final
consumer sellers.

In the case of terrorism, the rise in prices ought to be non
noticeable, since the threat of terorism is an *external* threat. It is
not internal nor has its causes internally (there can be differences,
of course, according to country and the perceived source) and besides
it is sporadic, so it wouldn't have a noticeable effect on a country's
inflation rate on a whole, though it may affect particular city's
inflation...

Fabrizio J Bonsignore now Danilo Jose Bonsignore
Danilo Bonsiñor Danilo Bonsiñore