The Future of Inflation: Insights from Nouriel Roubini

by | Sep 28, 2023 | Invest During Inflation | 30 comments




H.E. Sheikh Bandar bin Mohammed bin Saoud Al-Thani, Governor of the Qatar Central Bank and Chairman of the Qatar Investment Authority, and Nouriel Roubini, Professor Emeritus of Economics & International Business at New York University’s Stern School of Business, discuss monetary tightening and restoring price stability with Bloomberg’s Stephanie Flanders at the 2023 Qatar Economic Forum. The government of the State of Qatar is the underwriter of the Qatar Economic Forum, powered by Bloomberg.

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Nouriel Roubini: What’s Next for Inflation?

Nouriel Roubini, an acclaimed economist, known for predicting the 2008 financial crisis, is now turning his attention to the looming threat of inflation. As the global economy begins to recover from the depths of the COVID-19 pandemic, there are growing concerns about the potential surge in prices. Roubini’s analysis highlights the factors that could contribute to rising inflation and provides insights into what may lie ahead for the global economy.

One key factor leading to fears of inflation is the massive fiscal and monetary stimulus employed by governments and central banks worldwide to combat the economic fallout of the pandemic. The injection of trillions of dollars into economies has undoubtedly played a crucial role in averting a deeper recession. However, this influx of money could also have unintended consequences. As demand starts to outpace supply, prices for goods and services may rise, leading to inflation.

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Roubini also highlights the potential impact of supply chain disruptions. The pandemic has exposed vulnerabilities in supply chains on a global scale, as restrictions on movement and production halted the flow of goods and services. As economies reopen, the resulting backlog of demand could put additional pressure on prices. Coupled with commodity price increases driven by various factors, including heightened global demand and speculative trading, these disruptions pose a significant risk to price stability.

Furthermore, Roubini cautions that rising inflation expectations can become self-fulfilling prophecies. When consumers and businesses anticipate higher prices, they may alter their purchasing and investment decisions, leading to a spiral effect of rising prices. This expectation-driven inflation can be difficult to contain and reverse, making it a critical concern for policymakers.

While some argue that the factors contributing to the current inflationary pressures are temporary and transitory, Roubini maintains that there are structural issues at play. He points to the massive global debt burden, demographics, and rising income inequality as long-term drivers of inflation. According to Roubini, these underlying issues could exacerbate inflationary tendencies in the coming years.

Roubini suggests that central banks face a delicate balancing act in the months ahead. As economies recover, they must monitor the evolving inflationary pressures swiftly and take appropriate measures to prevent an inflationary spiral without prematurely tightening monetary policy and stifling economic growth. Such a delicate balancing act requires a deep understanding of the dynamics at play and careful calibration of policy tools.

As the global economy gradually recovers from the ravages of the pandemic, the question of what lies ahead for inflation remains a matter of intense debate. Nouriel Roubini’s analysis sheds light on the potential risks and challenges the world faces, urging policymakers to be vigilant and proactive to ensure price stability and sustained economic growth. Time will tell if his warnings are well-founded or if the global economy can navigate through these turbulent waters unscathed.

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30 Comments

  1. Leinad

    The man with the dress isa good role model for LGBTQ

  2. Marcus

    You can't build better communities by investing in churches and we now know that's a fact. Countries and companies can see the difference

  3. Marcus

    USA need all of those who act like the uk separated from the USA. We do not need our inflation to continue to go higher

  4. Musclezz

    Nouriel is a total Beast!

  5. ggttuuxx

    What's the deal with her insistence on challenging the peg with the USD? She can't accept the answer? Stupid waste of time. She's making it not an economic discussion, but a political one with an agenda. Stupid.

  6. Kay Hussain

    Dr roubini looks very older now just few years ago during covid he looked much younger

  7. Patrick Brussels

    Inflation is merely a superficial aspect; the underlying issue is that countries are increasingly relinquishing their dollar reserves and injecting trillions into the market. Consequently, the Federal Reserve will face significant pressure to implement numerous interest rate hikes, as the United States cannot afford to compromise the value of the dollar. Should the value decline, it would lead to a rise in the prices of goods and services. This phenomenon should be seen as a need for price re-evaluation rather than solely inflation.

  8. PD55

    Nouriel looks well nourished. Hey buddy you need more KETO and walking, dont stress about inflation.

  9. maw

    This central banker doesn't seem too intelligent lol =/

  10. GDDLS LLC

    They speak of “labor participation rate” as if it were nobody’s fault… it’s the governments WELFARE system. They have to eat right..??, where do they get money for food..?? WELFARE. Let’s start there

  11. Sew’n Sew

    Nouriel seems a traditional economist with the assumption that must have growth. For sustainability need improvement in quality of life with no growth. A new economic system. Governments are taking on enormous debts to artificially force up growth. This is the incorrect approach. Focus on improving quality of life with sustainability

  12. Antonio Morena

    This looks like an efficient way to pay government bonds cheaper. And eating off your pension. When's the last time you saw pensioners protest anything in the streets. 1 dollar sent to your pension fund in 1980 is, what, 30 cents today because of the Pelosi PizzaShitters. Diversify. Norwegian Krona.

  13. Lucas Davidson

    Interesting observation:
    Remember in the late 2010s, the global elites were talking about "upcoming pandemics."

    Now, suddenly, I'm hearing a lot mentioning "cyber attacks."

  14. nuno bartolo

    So what this inflation will just make the roi on automation a no brainer making both the entitled workforce and the third world countries supplying labor irrelevant

  15. Erik Kurilla

    The government has no firm plans to combat inflation. Stocks, Houses and commodities will rise along with everything else as they will continue to inflate. You can't just sit on your cash and wait for a crash; you have to put your money to work, start investing gently, and then pick up the pace as the prices fall further. Making the decision to take money out of my account in excess of $500K at this time is more difficult. I am aware of certain investors that continue to make that much despite the terrible downturn market. I wish I could pull that off.

  16. J Johnson

    Need to sight the camera in a better location

  17. Carlos Castro

    20:15 hope in one year time they sit down together again and reflect in that subject.

  18. Carlos Castro

    14:45 So, back to use Gold? "Real assets"…so, stop printing money and increasing inflation. Stop populist policies.

  19. Carlos Castro

    9:45 So, if there are years ahead of higher/core inflation…why Central Banks still talking about 2% target rate? What is the real base line for this new worldwide economy? 4%? 5%? Since 2020 everybody knew inflation was coming and Central Banks and politician keep laying about it…"it's transitory" is the best sticker ever sold…and here we are! So, for how long they are going to still basically laying and doing bad fiscal policies?

  20. Deesus

    The dollar isn’t weaponized. The Euro is weaponized.

    Few understand this.

  21. Mat Youkee

    The Qatari had zero useful imput to this discussion. And yet you insist on calling him "your excellency'. I hope Bloomie got paid well for this puff platform.

  22. David Car

    Get rid of Federal reserve, working class will be much better off.

  23. TheRamalinga

    Guess they don’t know Nouriel is Israeli

  24. Michael Boguski

    Americans teach the world chronic Consumerism.
    The Future is leveraged.
    Let the games begin!

  25. Milos Nestorovic

    Dedollarization is chaos,Complete and Absolutely,utter Chaos, the Biggest Chaos ever….

  26. GEOPOLITICAL ANALYSIS

    Inflation is a monetary phenomenon. It peaks and troughs. It's the silent tax of governments, deflation is not. Good talks

  27. johnny carson

    HYPERINFLATION IS COMING!!! WE ARE ALL DOOMED!!! GAS IS GOING UP!!! GAS = HIGHER INFLATION!!! HIGHER FOOD PRICE!!! HIGHER RENT!!! YOU WILL HAVE NOTHING AND BE HAPPY!!! DAY BY DAY WE ARE GETTING POOR!!!! WAKE UP!!!!

  28. saurabh B

    He is what I call the ever complaining pessimist. He’s been crying wolf for the last 12 years and when finally the economy tanks, everyone will give him credit for calling it. But the buffoon’s been at it for so long, he eventually had to be right.

  29. Rubin4749

    I love these cartoon ads for "Acura". You know what Acura is?? It's just the same as a Honda but they added on $10k or $15k so Joe Q Illiterate American can brag to his neighbor he just overpaid $15k for a damned Honda car.

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