Inflation may challenge markets next year: Morgan Stanley’s chief economist Chetan Ahya

 Inflation may challenge markets next year: Morgan Stanley’s chief economist Chetan Ahya
Inflation may challenge global financial markets in the middle of 2022, says Morgan Stanley‘s chief economist Chetan Ahya. Edited excerpts from an interview:



Which countries in developed markets are taking steps to drive growth? Also what is the role of emerging markets in driving global growth?
It is quite broad-based in DMs (developed markets). We are going to see recovery in both US and in Europe, but the US is playing an outsized role in this cycle. It is actually leading the front in terms of capex. Within EMs, China is leading investments. China’s private investments have always been linked to improvement in external demand and we are already seeing an evidence of that. But we should see it being broad-based across DMs and across EMs. Even some of the big economies in Asia will see improvement in external demand. They should see improvement in capex.

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