Malcolm Knight, General Manager of the BIS, is resigning and I will be surely missing his speeches.
In this recent speech he raises numerous concerns over ailing world economy. The abstract is:
Continued financial deleveraging and asset price declines, persistent tensions in interbank markets and substantial and involuntary increases in banks’ balance sheets suggest increased restraint of new credits for productive activity. Hence, current financial conditions present significant downside risks to economic growth in the United States and other advanced economies.
The easing of monetary policy undertaken in a number of key jurisdictions in recent months to address continuing stress in the financial system and the weakening growth outlook has been accompanied by increases in actual and expected price inflation at the global level.
Recent trading and price developments in the oil market can be viewed as consequence and indicator of the recent pronounced loosening of monetary conditions.
We thus might be entering a period of stagflation with sharply rising expected and actual inflation combined with large downside risks to growth and employment.
Superb speech full of fantastic graphs (which is a BIS speciality) . In just 7 pages it says all you need to know about the current world economy conditions.