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World Economy Can Avoid 1970s Rerun, Albeit With Some Hurt

  • Central Banks learnt inflation 1970s lesson and will slow it
  • Surging commodity prices prompting talk of parallels
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Lagarde: War Is 'Substantial Upside Risk' to Inflation
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The world economy has a decent shot at escaping a full re-run of 1970s-style stagflation -- and that’s about as far as the good news goes.

A historic surge in commodity prices after Russia’s invasion of Ukraine, coming on top of already-high pandemic inflation, has gotten investors and economists searching for parallels with the energy shocks of four decades ago and the prolonged slowdowns that followed.