“Dr. Doom” Nouriel Roubini said that we’ll have inflation for a long, long time – wars, the robot revolution, and a basket of other disasters that will plague the global economy are the culprit.
“Inflation rose sharply throughout 2022 across both advanced economies and emerging markets. Structural trends suggest that the problem will be secular rather than transitory,” the top economist said in a recent op-ed for Project Syndicate.
That comes after a challenging year for the US economy, with prices skyrocketing to a 41-year-high in 2022 and still blasting above the Fed’s 2% target. According to Roubini, central bankers around the world are unlikely to bring down inflation without causing a severe recession.
Central bankers can’t cushion a debt crisis without cutting interest rates, which could worsen inflation. That dilemma could hit the global economy with “the mother of all stagflationary debt crises,” Roubini warned a financial disaster that entails high unemployment, high inflation, and in the US, a sharp stock market crash.