Development

Why to Be Wary of Another Volcker-Type Monetary Tightening

For a long time, stagflation was thought to be a thing of the past. But now there is a real risk of it coming back, warns the Bank for International Settlements (BIS 2022), the ‘central bank’ for the world’s central banks. High inflation is expected to be around for a prolonged period of time—as a result of the recurring reinstatements of lockdowns in China, the surge in global energy and commodity prices following Russia’s war in Ukraine, global warming, and the breakdown of global supply chains due to geopolitical tensions.

Fears of ‘stagflation’ have come back to haunt macroeconomic policy makers all over the globe

As 2022 comes to a close, panelists discuss the immediate prospects for the global economy, the dangers of a lost decade for developing countries and what needs to be done to put the SDGs back on track.

Moderator: Richard Kozul-Wright, Director of the Globalization and Development Strategies Division

UNCTAD Panelists: