The Great Moderation is dead and a stagflationary debt crisis looms5 min read 04 Jan 2023, 11:57 PM IST
Expect higher war spending by governments, large deficits, debt monetization and inflation to go with global supply shocks.
Inflation rose sharply throughout 2022 across both advanced economies and emerging markets. Structural trends suggest that the problem will be secular, rather than transitory. Specifically, many countries are now engaged in various ‘wars’—some real and some metaphorical—that will lead to even larger fiscal deficits, more debt monetization, and higher inflation in the future.
Select your Category