New York University professor Nouriel Roubini, who is known to have predicted the 2008 global financial crisis, warned of a further plunge in the global stock market as she predicted a complex economic crisis.
Professor Roubini raised the possibility of a 'stagflationary debt crisis' by posting on 'Project Syndicate', an international media outlet specializing in contributions.
"Supply-induced inflation is stagflationary," said Professor Roubini, who has diagnosed that supply-side factors are increasingly playing a decisive role in the recent surge in prices, and thus increases the risk of a hard landing when tightening monetary policy.
He went on to add that if central banks stop tightening currencies just because a hard landing is expected, the economy could overheat or stagflation as inflation prolongs.
In addition, Professor Roubini predicted that the next economic crisis would be a 'stagflation-type debt crisis', combining the 1970s, when the debt level was not high, and the 2008, when the debt crisis, followed by deflation.
As a result, the already sluggish global stock market crash "may be close to 50%" and that "in the current context, any rebound should be viewed as a 'dead cat bounce', meaning a temporary rebound in a downtrend, rather than an opportunity to buy at a low price." he emphasized.
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