On Friday’s transmit of the Fox News Channel’s” America Reports”, economist, President of Queens ‘ College, Allianz Chief Economic Adviser, and former Obama Global Development Council Chair Dr. Mohamed El- Erian said that it will become “very difficult” to get inflation from its present rate down to the 2 % target and doing so may involve trade- offs because we have moved from a negative environment to an expansionary one because we’ve shifted from “deregulation, liberalization, governmental prudence” to “industrial policy, government intervention, and governmental irresponsibility”. And because of a lack of modernization.
El- Erian said, ]relevant remarks begin around 1: 15 ]” What they call the last mile, which is getting from around 3.5 % inflation to 2 %, which is the target, is going to be very hard, and it will include trade- offs. Why is this really difficult? Second, domestically, things have changed. We used to be in a negative environment, restructuring, reform, fiscal prudence. Today, we have industrial policy, government interference, and fiscal irresponsibility. Therefore, the home environment has changed. The international environment has changed. We are no longer globalizing, we are fragmenting the international market. Therefore, if you look at the atmosphere, you’re trying to overcome a lot of winds when those were tailwinds”.
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