Pandemic government spending, labour shortages, rising gas prices, and supply chain bottlenecks have led to a surge in inflation and some of the fastest price gains for a broad range of goods and services in the last 40 years. In response, some financial experts expect central banks to raise rates multiple times this year and start selling off some of the hundreds of billions in bonds they purchased during the pandemic. The threat of entrenched inflation supposedly requires central banks to respond aggressively and raise interest rates repeatedly over the course of 2022 despite tightening financial conditions and seemingly slowing economic growth. Other economists disagree, insisting that central banks have responded appropriately by not taking drastic and unnecessary action that could cause a recession. Long term inflation pricing in the bond market suggest that the inflation threat is a short-term problem and small rate increases now can more than offset the risk of runaway, long-term inflation. The bigger risk is an economic slowdown or outright recession brought on by central banks raising rates too fast while selling off hundreds of billions in bonds into a global debt market that will struggle to absorb record government deficits.

Arguing for the  motion is Mohamed El-Erian, President of Queens' College at Cambridge University and Chief Economic Advisor to Allianz SE

Arguing against the motion is David Rosenberg, President and Chief Economist and Strategist of Rosenberg Research & Associates Inc.

QUOTES:

MOHAMED EL-ERIAN

“The Fed has to act and act boldly. Already it has lost some credibility, and if it delays more, it will lose even more credibility and have very few policy options that are attractive.”

DAVID ROSENBERG

“My view is that  inflation is going to ultimately decline of its own accord and the historical record proves that.”

Sources: 

CNN, CNBC, PBS, France24

The host of the Munk Debates is Rudyard Griffiths - @rudyardg.  

Tweet your comments about this episode to @munkdebate or comment on our Facebook page https://www.facebook.com/munkdebates/

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Members receive access to our 10+ year library of great debates in HD video, a free Munk Debates book, newsletter and ticketing privileges at our live events.

This podcast is a project of the Munk Debates, a Canadian charitable organization dedicated to fostering civil and substantive public dialogue - https://munkdebates.com/

Senior Producer: Ricki Gurwitz

Editor: Reza Dahya

Pandemic government spending, labour shortages, rising gas prices, and supply chain bottlenecks have led to a surge in inflation and some of the fastest price gains for a broad range of goods and services in the last 40 years. In response, some financial experts expect central banks to raise rates multiple times this year and start selling off some of the hundreds of billions in bonds they purchased during the pandemic. The threat of entrenched inflation supposedly requires central banks to respond aggressively and raise interest rates repeatedly over the course of 2022 despite tightening financial conditions and seemingly slowing economic growth. Other economists disagree, insisting that central banks have responded appropriately by not taking drastic and unnecessary action that could cause a recession. Long term inflation pricing in the bond market suggest that the inflation threat is a short-term problem and small rate increases now can more than offset the risk of runaway, long-term inflation. The bigger risk is an economic slowdown or outright recession brought on by central banks raising rates too fast while selling off hundreds of billions in bonds into a global debt market that will struggle to absorb record government deficits.
Arguing for the&nbsp; motion is Mohamed El-Erian, President of Queens' College at Cambridge University and Chief Economic Advisor to Allianz SE
Arguing against the motion is David Rosenberg, President and Chief Economist and Strategist of Rosenberg Research &amp; Associates Inc.
QUOTES:
MOHAMED EL-ERIAN
&ldquo;The Fed has to act and act boldly. Already it has lost some credibility, and if it delays more, it will lose even more credibility and have very few policy options that are attractive.&rdquo;
DAVID ROSENBERG
&ldquo;My view is that&nbsp; inflation is going to ultimately decline of its own accord and the historical record proves that.&rdquo;
Sources:&nbsp;
CNN, CNBC, PBS, France24
The host of the Munk Debates is Rudyard Griffiths -&nbsp;<a href="https://twitter.com/rudyardg">@rudyardg</a>. &nbsp;
Tweet your comments about this episode to&nbsp;<a href="about:blank">@munkdebate</a>&nbsp;or comment on our Facebook page&nbsp;<a href="https://www.facebook.com/munkdebates/">https://www.facebook.com/munkdebates/</a>
To sign up for a weekly email reminder for this podcast, send an email to&nbsp;<a href="mailto:podcast@munkdebates.com">podcast@munkdebates.com</a>. &nbsp;
To support civil and substantive debate on the big questions of the day, consider becoming a Munk Member at&nbsp;<a href="https://munkdebates.com/membership">https://munkdebates.com/membership</a>
Members receive access to our 10+ year library of great debates in HD video, a free Munk Debates book, newsletter and ticketing privileges at our live events.
This podcast is a project of the Munk Debates, a Canadian charitable organization dedicated to fostering civil and substantive public dialogue - <a href="https://munkdebates.com/">https://munkdebates.com/</a>
Senior Producer: Ricki Gurwitz
Editor: Reza Dahya

The Munk Debates podcast is an extension of the main stage events - in subject, speaker selection, tone and format. It will introduce the iconic brand - and its engaging debates about significant issues of our time. Audiences will hear strong and passionate arguments from both sides of an issue so they will have enough information to make up their own minds about where they stand.

The Munk Debates podcast is an extension of the main stage events - in subject, speaker selection, tone and format. It will introduce the iconic brand - and its engaging debates about significant issues of our time. Audiences will hear strong and passionate arguments from both sides of an issue so they will have enough information to make up their own minds about where they stand.

The Munk Debates Podcast

The Munk Debates Podcast is dedicated to convening civil and substantive debates and dialogues on the big issues of the day. Each debate features two compelling thinkers debating a topic driving the public conversation. Each dialogue features world-renowned thinkers offering unique insight into the issues affecting us most. The podcast is an extension of the charitable Munk Debates' commitment to pushing back against the political polarization and restoring the art of public debate in our time. For more information about the Munk Debates visit www.munkdebates.com/podcast

The Munk Debates Podcast is dedicated to convening civil and substantive debates and dialogues on the big issues of the day. Each debate features two compelling thinkers debating a topic driving the public conversation. Each dialogue features world-renowned thinkers offering unique insight into the issues affecting us most. The podcast is an extension of the charitable Munk Debates' commitment to pushing back against the political polarization and restoring the art of public debate in our time. For more information about the Munk Debates visit www.munkdebates.com/podcast

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