ISAAH MHLANGA: The global economy is facing the jaws of the hippopotamus
Can policymakers avoid a global recession while bringing inflation down?
The World Bank released its June economic prospects for the global economy with a warning that the likelihood of stagflation — high inflation combined with shallow growth or recession — has risen.
The report points out that the stagflation of the 1970s required aggressive increases in interest rates by major advanced economies to bring inflation down, triggering a global recession and financial crisis in emerging markets and developing economies. ..