Davos elites need to wake up to 'megathreats' the world is facing | Nouriel Roubini

IMF and others have warned we face the most acute economic and financial challenges in decades

A host of interconnected megathreats" is imperilling our future. While some of these have been long in the making, others are new. The stubbornly low inflation of the pre-pandemic period has given way to today's excessively high inflation. Secular stagnation - perpetually low growth owing to weak aggregate demand - has evolved into stagflation, as negative aggregate supply shocks have combined with the effects of loose monetary and fiscal policies.

Where once interest rates were too low - or even negative - they have now been rising fast, driving up borrowing costs and creating the risk of cascading debt crises. The age of hyper-globalisation, free trade, offshoring, and just-in-time supply chains has yielded to a new era of deglobalisation, protectionism, reshoring (or friend-shoring"), secure trade and just-in-case" supply-chain redundancies.