Wednesday, September 22, 2021
Martin Hennecke

Inflation still in the wind
<p>Nobel laureate Paul Krugman wrote in a column that inflation may be temporary once the pandemic is under control.</p><p>However, the economist Mohamed El-Erian, president of Queens&#39; College, Cambridge and an adviser to Allianz, predicted that supply-chain disruptions worldwide may last a couple of years and high prices may bring 1970s-style stagflationary headwinds to the global economy.</p><p>Small businesses across the globe continue to suffer from shortages and delays of key resources due to disruptions in the supply chain.</p><p>Such issues will be &quot;complicating corporate and policy plans, and could undermine investments based on the ample liquidity injections from central banks that have pushed many markets ever higher,&quot; the veteran economist said in a Financial Times op-ed on Monday.</p><p>Added to inflation already in the pipeline, this can result in a stagflationary environment for the global economy that may be unfamiliar to people who did not live through the 1970s, El-Erian wrote.</p>

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