The increasing evidence of stagflation

If policymakers delay, the global economy will neither be saved by self-correcting forces nor pushed into a prolonged stagflationary trap. 

Instead, the world will return to the previous “new normal” of economic underperformance, stressed social cohesion, and destabilizing financial volatility.

Mohamed A. El-Erian Project Syndicate 22 September 2021

https://www.project-syndicate.org/commentary/global-stagflation-risk-and-policy-response-by-mohamed-a-el-erian-2021-09

Goldilocks Is Dying

Given today’s high debt ratios, supply-side risks, and ultra-loose monetary and fiscal policies, the rosy scenario that is currently priced into financial markets may turn out to be a pipe dream. 

Over the medium term, a variety of persistent negative supply shocks could turn today’s mild stagflation into a severe case.

Nouriel Roubini Project Syndicate 21 September 2021

https://www.project-syndicate.org/commentary/reflation-trade-or-overheating-and-stagflation-by-nouriel-roubini-2021-09