- Speaking on Bloomberg, Nouriel Roubini predicted that inflation would stay above 2% arguing that “the great moderation is over” and citing both supply and demand side factors.
On the supply side, Roubini cited a litany of reasons including de-globalization, aging population, climate change, geopolitical conflict and backlash against inequality.
- On the demand side, Roubini sees a continuation of structural deficits as a result of high public and private debts.
- Roubini has previously stated that he sees risk of stock and bond market declines as a result of stagflation, as well as long-term opportunity in commodities.
Roubini warns low interest rates are over, “entering a period of great stagflation”
- By FGT