Nouriel Roubini Calls Return to 2% Inflation 'Mission Impossible'

The transcript discusses a shift from the era of low inflation, known as the Great Moderation, to a period characterized by stagflation and financial instability. This change is driven by both supply-side factors, such as deglobalization and geopolitical conflicts, and demand-side influences, including high levels of public and private debt. The speaker argues that maintaining inflation at 2% is unrealistic, suggesting a new normal of 3-4% for advanced economies due to structural factors.

What marks the end of the Great Moderation era?

• The onset of stagflation and financial instability

• The beginning of a new era of globalization

• A period of low inflation and high growth

• A return to high inflation and stable growth

Which of the following is a supply-side factor contributing to inflation?

• Increased public spending

• Technological advancements

• Deglobalization

• Rising tax rates

What is a demand-side issue that affects inflation?

• Geopolitical conflicts

• Climate change

• High levels of public debt

• Aging population

Why is maintaining a 2% inflation rate considered unrealistic?

• Because taxes are expected to rise significantly

• Because of structural supply and demand factors

• Due to cyclical economic factors

• Due to a decrease in global trade

What is the predicted new normal inflation rate for advanced economies?

• 1-2%

• 2-3%

• 3-4%

• 4-5%