Morgan Stanley: Global economy faces high inflation

The world economy was on the threshold of strong inflation, which governments of leading Western countries must find ways to reduce the size of the giant national debt created by the anti-crisis program to prevent depression. Such a conclusion was an influential American bank Morgan Stanley in an analytical report, which circulated today in the City of London.

It notes that the regime is leading industrialized nations under the weight of huge debts faced a difficult dilemma: either default or inflation. "Naturally, the choice will be made in favor of the latter," - noted in the study.



In general, the current situation of government debt is comparable to the position of finance in the long war, says Morgan Stanley. But it is now even worse, because the problem of the enormous debt imposed and the difficulties associated with aging populations in Western countries, as well as maintaining a significant amount of spare production capacity. The result will be the impossibility of withdrawal of their economies in the medium term, the rapid pace of growth.

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