The world economy was warned of a “time bomb”

2 weeks ago

Deutsche Bank warned of the danger of ignoring inflation. It could lead to a new crisis in the coming years, the consequences of which would be devastating.

Stimulating the economy while ignoring inflationary concerns can be a mistake, analysts say. They believe that the U.S. Federal Reserve’s (Fed) refusal to tighten monetary policy until inflation shows steady growth will have dire economic consequences. By ignoring inflation, “the world economy is sitting on a time bomb,” experts say.

The world economy was warned of a "time bomb"

The world economy will face a new major crisis in the coming years. This was announced earlier by Andrei Makarov, head of the Duma Committee on Budget and Taxes. He believes that next to a new crisis the Great Depression will seem like a child’s play.

The Center for Macroeconomic Analysis and Short-Term Forecasting (CMASTF) estimates that the new wave of economic crisis will hit the world in 2025-2026. Economists noted that the current monetary stimulus will greatly accelerate the markets and this will eventually lead to their overheating.