How the pandemic became stagflationary
As the virus has changed, so has its relationship to the economy
IT HAS BEEN a summer of unpleasant surprises for the world economy. America, Europe and China are growing more slowly than investors had hoped. Consumer prices are rising uncomfortably fast, especially in America. Even in the euro area, used to tepid inflation, prices in August were 3% higher than a year earlier, the most in a decade. Economies are troubled by shortages of parts and labour, slow and expensive shipping and the bewildering variation of lockdown measures.
This article appeared in the Leaders section of the print edition under the headline “Delta means change”
From the September 4th 2021 edition
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