Inflation ‘is a worldwide problem’ says Lucy Frazer
Rocketing energy prices and high inflation in major economies are pushing the world towards an economic slowdown, fuelling fears of a possible global recession. Investment giant Morgan Stanley identified central bank tightening, supply chain disruption, persistent inflation, war in Ukraine and the lingering effects of the Covid pandemic as risks to global growth in a briefing on Wednesday, May 18.
Professor Ricardo Reis, Arthur Williams Phillips Professor of Economics at the LSE, told Express.co.uk that two risks pose particular threats to the global economy.
He said: “One is the increase in oil prices and the extent to which that persists.
“Energy is a big input to production. [The second is] high inflation in advanced economies leading to tight monetary policy.”
Professor Reis continued: “The war in Ukraine ending would make a big difference.
Ending the war in Ukraine would make a…