Odd Lots

Viktor Shvets on Why We Might Be Heading for a Deflationary Bust

The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S.

Photographer: Samuel Corum/Bloomberg
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In times of uncertainty, people often reach for historical analogies. In recent weeks and months, as inflation has continued to climb and commodity prices spike, there's been a lot of talk of a return to the 1970s. But is that the right parallel? On this episode of Odd Lots, Tracy Alloway and Joe Weisenthal speak to Macquarie Capital Strategist Viktor Shvets about why we should instead be looking at different historical eras. He argues that central banks are at risk of raising rates too quickly and flipping the world into recession. After policy tightening this year, he sees a return to policy easing as early as 2023.