Economist Nouriel Roubini has warned that advanced economies and emerging markets are facing a “growing stagflationary storm” following a string of aggregate supply shocks and rising costs.
Stagflation is a period marked by both rising inflation and increasing unemployment, something the United States has not experienced since 1980.
Writing in The Guardian, Roubini, a professor of economics and international business at New York University’s Stern School of Business, pointed to several events that have led to a current slump in the economy, such as the COVID-19 pandemic, which disrupted global supply chains and led to a labor supply crisis, and Russia’s invasion of Ukraine, which has further exacerbated energy prices.
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