Structurally higher inflation and possibly interest rates would lead to a "painful and possibly disruptive" decline in asset prices - likely housing. The authors said growth would probably be "lower" while " inflation and interest rates higher". The combination of higher inflation and interest rates would make spending decisions more difficult, as it would raise the cost of each investment. Perhaps the biggest trend is the retreat from globalisation, which the authors feared would result in long-term higher costs, which would lead to long-term higher costs and higher inflation. Higher inflation and interest ratesOne consequence of this retreat from globalisation would be higher inflation and interest rates.

Source: New Zealand Herald September 06, 2022 19:30 UTC