The COVID-19 pandemic and Russia's invasion of Ukraine have left most of the world reeling from the effects of stagflation. But as long as monetary authorities are taking pains to keep inflation expectations anchored, there is little reason to think that such conditions will become the new normal.
NEW YORK – A good case can be made that secular stagnation – sustained slower growth – is looming for most advanced economies, China, and many emerging markets and developing economies dependent on trade and foreign investment. Advocates of this view point to aging populations, deglobalization, climate change and biodiversity loss, rising inequality, and excessive debt, whereas optimists instead tout the potential of younger, dynamic countries and productivity-boosting technologies such as artificial intelligence, robotics, and bioengineering.
NEW YORK – A good case can be made that secular stagnation – sustained slower growth – is looming for most advanced economies, China, and many emerging markets and developing economies dependent on trade and foreign investment. Advocates of this view point to aging populations, deglobalization, climate change and biodiversity loss, rising inequality, and excessive debt, whereas optimists instead tout the potential of younger, dynamic countries and productivity-boosting technologies such as artificial intelligence, robotics, and bioengineering.