Central banks in stagflation and debt traps

Project Syndicate/Interview of Nouriel Roubini/11-15-2022

graphic illustration of stagflation - stagnation + inflation

“Historically, financial innovation without proper regulation and supervision has led to asset inflation, which fuels bubbles that eventually burst. Today, we are also facing goods and services inflation, owing to negative aggregate supply shocks and the effects of fiscal and monetary policies that were too loose for far too long. With high inflation, the debasement of fiat currencies is a rising risk.”

USAGOLD note: The latest from Stern School’s Roubini…… He echoes a familiar refrain – central banks are “damned if they do, damned if they don’t.” Gold is on his list of recommended investments.

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