Pain of breaking inflation will reverberate around the world, top finance chiefs say

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Inflation is near double-digit territory in many of the world’s biggest economies, a level not seen in close to a half century

The complication is that central banks for the most part appear to have only limited control.

Lastly, a new inflation regime may be setting in that will keep upward pressure on prices for an extended period. “If so, the recent pickup in inflationary pressures may prove to be more persistent,” said Carstens, who heads a group often called the central bank of the world’s central banks. “For the Fed right now – it is crunch time,” said Peter Blair Henry, a professor and dean emeritus of the New York University Stern School of Business.

Bigger countries like China and India appear to be well isolated but a host of smaller countries from Turkey to Argentina are clearly suffering. A monitor by S&P Global now considers the funding risk of lenders in South Africa, Argentina and Turkey high or very high. It also sees the credit risk of financial firms high or extremely high in a host of countries, including China, India, and Indonesia.

 

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It’s too bad that nobody is responsible for this. That inflation is just an act of nature, and we should just accept it. Why would we change governments, bureaucrats, policies when it was just dumb luck we got inflation?

'a creditor of the public...has no interest in the good condition of any particular portion of land, or in the good management of any particular portion of capital stock...he has no knowledge of any such particular...Its ruin...cannot directly affect him.'

It’s going way higher from climate change. Just wait

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