Transcript: Viktor Shvets on the Risk of A Deflationary Bust

We’re in a moment of extraordinary uncertainty for the world economy. Inflation is hot. The pandemic is still with us. And of course, Russia’s invasion of Ukraine has created a host of new uncertainties, not to mention further inflationary pressure. Against this backdrop, major central banks are set to embark on an aggressive schedule of rate hikes in the hope of cooling inflation and engineering a so-called “soft landing.” On this episode, we speak with Macquarie strategist Viktor Shvets, who warns that central bankers may be making a policy error, and may be forced to reverse course as soon as next year. Transcripts have been lightly edited for clarity.