BIS warns that the global economic indicators are "flashing red", real risk of stagflation

The annual report of the Bank for International Settlements (BIS) was released on Sunday.

It makes for grim reading.

• “At a minimum, a spell of below-trend growth will be required to return inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to acceptable levels. But a modest slowdown may not be enough. Lowering inflation could involve significant output costs, as after the “Great Inflation” of the 1970s,”
• “In a worst-case scenario, the global economy could be set for a period of stagflation, involving both low growth, if not an outright recession, and high inflation.”

BIS general manager Agustín Carstens:

• current combination of high inflation & historically high debt levels was unprecedented
• “For too long, fiscal and monetary policy have been the go-to economic fix, resulting in debt-fuelled growth. These have now run out of road,”
• “As monetary policy tightens, tensions with fiscal policy will emerge. As monetary normalisation gathers pace, growth rates will probably be closer to or even below interest rates”