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Storm Clouds Over the Global Economy

Following Russia’s invasion of Ukraine and a resurgence of inflation around the world, the prospects for a robust global recovery from the COVID-19 pandemic have dimmed. Not only is the macroeconomic outlook more mixed; monetary and fiscal policymakers in major economies also will have less room for maneuver.

ITHACA – This was supposed to be the year of post-COVID normalization, labor-market healing, and a revival of economic growth. Yet it is turning out to be a fraught period of geopolitical realignments, persistent supply disruptions, and financial-market volatility, all of which are playing out in a context of surging inflationary pressures and limited policymaking space.