Deutsche Bank: Current Global Energy Trends "Strikingly Similar" to the Stagflation Nightmare of the 1970s

Mars Finance News, March 10 — Jim Reid, Head of Research at Deutsche Bank, stated in a recent research report that the current global energy market trend bears a “striking resemblance” to the macroeconomic trajectory before the second oil crisis in the 1970s: both storms occurred 4-5 years after a surge in inflation, with Iran at the center. The report notes, “Whether history repeats itself entirely depends on the duration of this conflict.” However, Deutsche Bank pointed out that in the late 1970s, runaway inflation expectations and the second oil shock ignited a “wage-price spiral,” forcing central banks to adopt aggressive monetary tightening policies. Today, despite the inflation surge in 2022-23, long-term inflation expectations remain unusually stable. (Wall Street Journal)