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Lagarde: We Are Not Seeing Stagnation

ECB

Q: How long do you think supply bottlenecks will last? If the inflation was not temporary, do you see any risk of stagflation?

  • A: Supply bottlenecks will fade. It will most likely take a little longer than we and other forecasters had initially expected. We are not seeing stagnation. To have stagflation, you need stagnation. We still have a strong recovery, although growth has moderated. Inflation will continue to rise, but will begin to decline in the beginning of 2022.

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