Inflation is coming, and the world economy’s fate depends on the Fed
- China’s entry into the global economy took away the pricing power of labour everywhere else. That drove a disinflationary trend for decades
- But inflation is returning, as monetary largesse becomes a mantra among major economies. There are two possible endings to this story
Dr Andy Xie is a Shanghai-based independent economist specialising in China and Asia, and writes, speaks and consults on global economics and financial markets. He joined Morgan Stanley in 1997 and was managing director and head of the firm’s Asia-Pacific economics team until 2006. Prior to that he spent two years with Macquarie Bank in Singapore, where he was an associate director in corporate finance. He also spent five years as an economist with the World Bank. He was voted one of the 50 most influential persons in finance by Bloomberg magazine in 2013.