This week’s World Economic Outlook report from the IMF, Tett
The message in this tome that grabbed most attention this week was that the world faces rising inflation, high debt and stalling growth — stagflation, in other words, although the IMF tactfully downplays that term.
But on page 62 of the report there was also an intriguing little sidebar about the “Saving Glut of the Rich”.
Western central bankers have limited incentive to study these issues too publicly, since many feel privately embarrassed that quantitative easing has made inequality worse.
Gillian Tett FT 21 April 2022
https://www.ft.com/content/90404d0b-57aa-4163-b612-6e6ac594afe7
Hunger and Blackouts Are Just the Start of an Emerging Economy Crisis
Fed hikes and pandemic debt piles add to the risks for developing nations. Some are already sliding into turmoil
The IMF, in its latest World Economic Outlook, likened the war’s impact to “seismic waves” rolling over the global economy. It also warned of the possible return in emerging markets of the sort of “doom loop” that led Russia to default in 1998, helped bring Vladimir Putin to power and took hedge fund Long Term Capital Management to the verge of collapse.
The World Bank slashed its global growth forecast and announced the creation of a $170 billion rescue package — bigger than its Covid-19 response — for crisis-hit nations.
Bloomberg 20 april 2022
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