As the head of state explained, the reason for this situation was "excessive stimulation", which turned into general instability and an increase in prices for financial assets, as well as goods in certain markets - energy and food.
“The underlying cause of these phenomena is severe budget deficits in developed economies.
This is the root cause.
Their persistence creates a risk of high global inflation in the medium term, which not only increases the risks of a decline in business activity, but also consolidates and aggravates inequality, ”Putin said.
In this case, it is important to prevent the unwinding of the stagflationary spiral, he stressed.
To do this, we need to work towards "normalizing fiscal and monetary policies," as well as improving the quality of management of the structure of demand in the economy and setting economic priorities primarily to overcome the problems of inequality and to increase the well-being of citizens, Putin added.
As the president said earlier, Russia has normalized its macroeconomic policy so that the budget will be in surplus.