After a v-shaped rebound witnessed over the past 12 months, it seems that the world economy is finally hitting a road block . Bloomberg reported on 31 March that European inflation rate, at 1.5%, is hitting its fastest pace since December 2008 while unemployment rate breached double digits for the first time since August 2008.
As Europe, and the world's other major economies, keeps interest rate at historical low and maintains high level of fiscal spending without tackling the structural reform of the economy, stagflation will return.
The canary has begun to sing.
As Europe, and the world's other major economies, keeps interest rate at historical low and maintains high level of fiscal spending without tackling the structural reform of the economy, stagflation will return.
The canary has begun to sing.
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