"The man dubbed "Dr Doom", US-based economist Nouriel Roubini, is warning that the world is facing a "perfect storm" of high inflation, rising interest rates and recession that will be "the worst of all worlds for workers".
Key points:
.Economist Dr Nouriel Roubini is tipping a "great stagflationary debt crisis"
.Dr Roubini warns the US Federal Reserve may be forced to lift interest rates above 6 per cent to get inflation under control
.The man dubbed 'Dr Doom' warns this could trigger a spiral of recession and debt defaults

For many Australians, it may feel like stagflation — a situation where the economy is shrinking even as prices keep rising — is already here.

But Dr Roubini expects things to get much worse across the so-called advanced economies as the year unfolds.

"I do believe that this stagflation rate crisis is going to emerge this year," he told The Business.

"The latest numbers on inflation coming from the US and Europe, and other advanced economies, showed that inflation now is quite sticky.

"Central banks are in a dilemma, because they have to raise rates more to fight inflation. But, if they do so, the economy is going to start to contract quite soon, and if they don't then we could have a de-anchoring of inflation and inflation expectations.

"So I expect that we're going to have a recession in the US and Europe, in other advanced economies, at a time where inflation is not back to 2 per cent."
The 'great stagflationary debt crisis'

Worse than the garden variety stagflation the world endured through much of the 1970s and early-1980s, Dr Roubini expects this to evolve into a "great stagflationary debt crisis" — combining some of the worst elements of the '70s with the global financial crisis.

"Now we're facing the perfect storm — inflation, recession, stagflation and a potential debt crisis," he warned."

https://www.abc.net.au/news/2023-03-03/nouriel-roubini-warns-of-stagflation-crisis/102045718