FROM MARKET TURBULENCE TO TRIUMPH: USHERING IN AMERICA’S ECONOMIC GOLDEN AGE
DOI:
https://doi.org/10.61841/as72e067Keywords:
COVID-19, market intermediaries, price inflation, global supply chains, World Trade Organization, Global Price Stabilization Framework, anti-hoarding, global transparency, consumer protection, regulatory reform.Abstract
The global trade was also significantly disrupted but to a large?extent, exacerbated such an instability in world economy as a result of COVID-19 pandemic. This brief provides insight into the role of market intermediaries (wholesalers,?distributors, logistics companies, etc.) and how they take advantage of the crisis to hike up prices and game the system of global value chains. And as factories started coming back online from the pandemic closure, prices of many essentials, like food and clothing, stayed elevated anyway, suggesting?the price increases were more from opportunism than from actual higher production costs. The report finds several factors contributing?to these sustained price jumps, such as cutthroat competition in the market, tight control of supply chains and evolving consumer behaviors. It suggests that the?World Trade Organization’s authority should be enlarged to govern price-setting actions and transparency in global markets, especially in periods of crisis. To address this, the paper suggests that a GPSF (Global Price Stabilisation Framework) be created to enforce globally binding prices at cost of production, anti-hoarding regulations and worldwide margin transparency with punishment for?profiteering. In addition, the GPSF would have an international consumer protection dimension to protect consumers from market abuse?of the most vulnerable. By analyzing these dynamics and suggesting regulatory solutions, this study seeks to expand the comprehension of the economic difficulties the pandemic has aggravated and?to contribute to the current discussion on the foundational principles of a fairer and more resilient global trading regime.
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