Stagflation

History tells us that a cycle began nearly half a century ago, in the late 1970s, following two consecutive oil crises and the appearance of stagflation. It was marked by the withdrawal of Keynesian economic management and, more importantly, by the erosion of society's trust in the complex democratic institutions it had managed to build.

September began at Athinon Avenue with concerns expressed by traders after the first hour related to the global economy and the fear of stagflation. That led the benchmark to losses of almost 1% and a drop below the 1,300-point mark on Friday.

German consumer confidence rose heading into August, a key survey showed yesrerday, as once red-hot inflation looked to be on the way back down.

Pollster GfK said its forward-looking survey of around 2,000 people rose to minus 24.4 points in August from minus 25.2 points in July.

Albanian Central Bank governor Gent Sejko at a press conference in Tirana on July 6, 2022. Photo: LSA

Bank governor Gent Sejko warned the country that a current inflation rate of 6.7 per cent might not have peaked, adding that while the country is expected to avoid a recession, growth will likely fall.

Travel on Britain's railway system ground to a halt again yesterday, as the second of three days of widespread strike action this week billed as the biggest in decades got underway.

Thousands of rail workers staged the latest day-long walkout over pay and working conditions, plunging commutes into chaos and forcing many people to stay at home.

Wall Street stock markets suffered heavy losses during trading yesterday, erasing the solid gains from the previous day that followed the regular meeting of the Federal Reserve.

Quarterly macroeconomic analysis of UniCredit Bulbank:

Economic growth in 2022 will remain at last year's levels amid growing fears of inflation

The Institute for Economic Research at the Bulgarian Academy of Sciences proposes three scenarios for the macroeconomic consequences in Bulgaria of fighting COVID-19, the Academy reported.

Turkey's economy is dragging into "stagflation," CHP deputy leader Aykut Erdoğdu warned, urging the ruling Justice and Development Party (AKP) to protect waged workers against high inflation and currency fluctuation by adopting a sliding scale system for wages. 

Last week?s data exposed the economy?s ?trio of challenges.? For one thing, Markit?s purchasing managers? index (PMI), which was released on September 1, fell below the critical 50 threshold in August, ?signaling an overall deterioration in business conditions at Turkish manufacturers.?