Goldilocks Is Dying
Given today’s high debt ratios, supply-side risks, and ultra-loose monetary and fiscal policies, the rosy scenario that is currently priced into financial markets may turn out to be a pipe dream. Over the medium term, a variety of persistent negative supply shocks could turn today’s mild stagflation into a severe case.
NEW YORK – How will the global economy and markets evolve over the next year? There are four scenarios that could follow the “mild stagflation” of the last few months.