There are currently four scenarios for the global economic outlook. Three of these entail potentially serious risks with far-reaching implications for markets.
The most positive is a “soft landing”, where central banks in the advanced economies manage to bring inflation back down to their 2 per cent targets without triggering a recession. There is also the possibility of a softish landing. Here the inflation target is achieved, but through a relatively mild (short and shallow) recession.
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Project Syndicate
Nouriel Roubini is Professor Emeritus of Economics at New York University’s Stern School of Business and Chief Economist at Atlas Capital Team.
