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Stagflation is a growing threat to the global economy – The Australian Financial Review
Over the next few years, loose monetary and fiscal policies will start to trigger persistent inflationary, and eventually stagflationary, pressure. In due course…
Moreover, investments in infrastructure will increase not just demand but also supply, by expanding the stock of productivity-enhancing public capital.
But, of course, even accounting for these dynamics, the bulge in private savings brought by the stimulus implies that there will be some inflationary release of pent-up demand.
A second, related argument is that the US Federal Reserve and other major central banks are being excessively accommodative with policies that combine monetary and credit…
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