On Friday’s broadcast of FOX News Channel’s “America Report,” Dr. Mohamed El-Erian, an economist, president of Queen’s College, Allianz chief economic advisor, and former chairman of the Obama World Development Council, said that getting it ” “It will be very difficult,” he said. Reducing inflation from current rates to the 2% target will require trade-offs. Because we have gone from “deregulation, liberalization, fiscal consolidation” to “industrial policy, government intervention and fiscal irresponsibility.” And because of the lack of globalization.
Elarian said: [relevant remarks begin around 1:15] “The so-called last mile of going from about 3.5% inflation to the 2% target will be very difficult and will involve trade-offs. Why is this so difficult? First, things have changed domestically. In the past, we were in an environment of deflation, deregulation, liberalization, and fiscal consolidation.Currently, the domestic environment has changed, with industrial policy, government intervention, and fiscal irresponsibility. The global environment has changed. We’re no longer globalizing, we’re fragmenting the world economy. So if you look at the environment, we’re trying to overcome a lot of headwinds that used to be tailwinds.”
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