Green Energy Transition Helped Create Higher Inflation Environment

On Friday’s Bloomberg “Surveillance” broadcast, Dr. Mohamed El-Erian, Bloomberg columnist, economist, president of Queen’s University, Allianz chief economic advisor, and former chairman of the Obama World Development Council, said that the transition to “sustainable energy” He said the project had contributed to the creation of “sustainable energy.” A world exposed to higher inflation than the world before.”

After arguing that the 2% inflation figure was an “arbitrary” number and that a rise from 3% to 2% was worthless, El-Erian said: “If we were to set an inflation target today based on long-term issues, Let’s talk about it, the domestic paradigm is changing. We are no longer part of the Washington consensus of deregulation, liberalization, and fiscal consolidation. , government intervention, fiscal irresponsibility. Let’s talk about international things. We’re not talking about globalization anymore. We’re talking about fragmentation. Look at the transitions that we’re facing, not only in generative AI, life sciences, sustainable energy, but also what’s happening in healthcare, what’s happening in defense, and so on. What’s happening with food security is that when you put all of this together, it’s a different inflation environment than before, where the world is exposed to higher inflation and we were exposed to lower inflation. It came from the world.”

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