Inflation 'policy errors of the 1970s echo in our times,' Financial Times columnist warns

NPR, '백인 특권' 기사 조롱, 제목 “Policy errors of the 1970s echo in our times,” compared America and the world today to the economic ills that plagued that disorderly decade, with the added warning thatVast debts make the world economy more fragile than it was over 40 years ago.

Unexpectedly high inflation, wars in key commodity-producing regions, declining real wages, slowing economic growth, fears of tightening monetary policy and turbulence in stock markets — we see all of these things in today’s world economy,” Martin Wolf, FT’s chief economics commentator wrote.

These were also the dominant features of the world economy in the 1970s,” 그는 덧붙였다.

BIDEN ON ECONOMY: ‘IT COULD BE WORSE’

President Biden speaks about inflation and supply chain issues at the Port of Los Angeles, 금요일, 유월 10, 2022, 로스 앤젤레스.

President Biden speaks about inflation and supply chain issues at the Port of Los Angeles, 금요일, 유월 10, 2022, 로스 앤젤레스. ((AP 사진/데미안 도바르가네스))

That period ended in the early 1980s, with a brutal monetary tightening in the US, a sharp reduction in inflation and a wave of debt crises in developing countries, especially in those of Latin America,” Wolf continued.

He noted that this period of crisis was followed by an upheaval of the global economy. “It was also followed by huge changes in economic policy: conventional Keynesian economics was buried, labour markets were liberalised, state-owned enterprises were privatised and economies were opened up to trade.

Some have speculated that similarly, the economic troubles of our time could lead to a reset of the global economy. Supply chain disruptions and increased geopolitical tensions between the U.S. and China could lead to more domestic production. 비슷하게, 미국. and Europe’s dependence on foreign actors, such as Russia, for oil is being called into question given the national security risks involved.

BIDEN FALSELY CLAIMS INFLATION ‘WORSE EVERYWHERE BUT HERE’, BUT US RATE HIGHER THAN MOST DEVELOPED COUNTRIES

우리. 조 바이든 대통령 (씨) meets with Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, in the Oval Office at the White House on May 31, 2022 워싱턴, DC. The three met to discuss the Biden Administration's plan to combat record-high inflation.

우리. 조 바이든 대통령 (씨) meets with Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, in the Oval Office at the White House on May 31, 2022 워싱턴, DC. The three met to discuss the Biden Administration’s plan to combat record-high inflation. (Photo by Kevin Dietsch/Getty Images)

Wolf ponderedhow close are the parallels, especially to the 1970s? What are the differences? And what can we learn from those mistakes?” 그는 말했다 countries riskstagflation if proper policy actions aren’t taken.

Does what we are seeing already amount to stagflation — defined as a prolonged period of higher than expected inflation and lower than initially expected growth? The answer is ‘not yet’, but it is a risk,” Wolf wrote.

Inflation is well above target almost everywhere,” 그가 썼어.

The echoes of the 1970s are loud then: higher than expected inflation, big shocks and weakening growth.Wolf also argued that despite this, “the differences are also encouraging.

이번 9 월. 30, 2021, 파일 사진, Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on Capitol Hill in Washington. Powell says the tangled supply chains and shortages that have bedeviled the U.S. economy since this summer have gotten worse and will likely keep inflation elevated well into next year. (Sarah Silbiger/Pool Photo via AP, 파일)

이번 9 월. 30, 2021, 파일 사진, Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on Capitol Hill in Washington. Powell says the tangled supply chains and shortages that have bedeviled the U.S. economy since this summer have gotten worse and will likely keep inflation elevated well into next year. (Sarah Silbiger/Pool Photo via AP, 파일)

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