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Easing in the Middle of Persistent Inflation May Worsen Stagflation Risk

Easing in the Middle of Persistent Inflation May Worsen Stagflation Risk
Customers browse food stalls inside Grand Central Market in downtown Los Angeles on March 11, 2022. Patrick T. Fallon/AFP via Getty Images
Daniel Lacalle
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Commentary

Thirty major central banks are expected to cut rates in the second half of 2024, a year when more than 70 nations will have elections, which often means massive increases in government spending. In addition, the latest inflation figures show stubbornly persistent consumer price annualized growth.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”