The Stagflation Threat Is Real - Roubini

Today’s mild stagflation will then give way to a happy goldilocks outcome – stronger growth and lower inflation – by next year. But what if this optimistic view is incorrect, and the stagflationary pressure persists beyond this year?

 Even if inflation stays higher than targeted, exiting QE too soon could cause bond, credit, and stock markets to crash. That would subject the economy to a hard landing, potentially forcing the Fed to reverse itself and resume QE.

After all, that is what happened between the fourth quarter of 2018 and the first quarter of 2019.

Nouriel Roubini Project Syndicate Aug 30, 2021

https://www.project-syndicate.org/commentary/mild-stagflation-is-here-and-could-persist-or-deepen-by-nouriel-roubini-2021-08

If policies to reduce inequality lead to unsustainable increases in private and public debts, the stage could be set for the kind of stagflationary debt crisis I warned about earlier this summer.

Nouriel Roubini MarketWatch 3 August 2021 

https://englundmacro.blogspot.com/2021/08/biden-is-continuing-trumps-break-with.html