Morgan Stanley Warns Inflation Is Now Entering The Overshoot zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.
It was supposed to be a dark winter for the economy.
But buoyed by government relief aid, falling COVID-19 cases and the vaccine rollout, growth is expanding briskly and the economy is projected to boom this year as pandemic-related restrictions ease.
Some economists even predict that by late 2021 and throughout 2022, the nation’s gross domestic output will be larger than it would have been if the pandemic hadn’t occurred.
“That’s a particularly remarkable outcome, especially when you consider that (in the aftermath of the Great Recession of 2007-09), the U.S. economy never really returned to its prerecession path,” Morgan Stanley Chief Economist Chetan Ahya wrote in a note to clients.
The question facing the economy is whether a fast-paced rebound can be made to last, freeing the nation from the low-growth rut it has plowed for most of the past 20 years, or will instead ignite the sort of inflation that has not been seen since the 1970s.
The question facing the economy is whether a fast-paced rebound can be made to last, freeing the nation from the low-growth rut it has plowed for most of the past 20 years, or will instead ignite the sort of inflation that has not been seen since the 1970s.