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Stagflation Danger Stalks Global Economy Beset by War Fallout

  • G-7 is now wondering how that outcome can be avoided
  • Chinese slowdown, Fed inflation vow threaten bleak outlook
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El-Erian Says US Stagflation Is ‘Unavoidable’

The world economy is increasingly succumbing to the threat of stagflation reminiscent of its 1970s ordeal, a mounting headache for global finance chiefs already navigating the fallout from the war in Ukraine. 

With China’s economy slowing sharply, and the Federal Reserve’s stepped-up vow to crush inflation raising worries of a widespread hard landing, warnings of the consequent dangers are intensifying. Group of Seven finance ministers and central bankers, who meet today in Germany, are now indicating outright concern that stagflation can no longer be swerved.