The Risk of Stagflation Is Rising

There are many economies in which the increase ing prices has absolutely nothing to do with demand growth. And that is not so clear this time. You can actually have a recession because of the rise in cor inflation, because of the increasing price of non replicable goods and services. So my point is that it is more likely than we see a stagnation environment in the next year or two. It's a very complicated environment, both for governments and for central banks. Governments seem to be reasonably equipped to take measures to curb inflation on all defracentary problems,. but hardly with cangand tools they are going to be able to manage environment of stagflation.