Distant thunder in the world economy

We're in the happy period of global economy coming back to life, but we need to watch carefully the US inflation situation

Here in India, we are recovering from the second wave, and peering into the recovery of the economy. Elsewhere in the world, the health problems are receding, and the economic recovery is proceeding strongly. In the US there are some concerns about inflation. In the short term, there is a fair chance that these are just the inevitable glitches that arise when switching the complex market economy back on. Once the restoration of normalcy is completed, the question of developed market (DM) inflation will become more pressing. When DM interest rates start rising, this will impinge on capital flows and