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We’re Awaited By Years Of Inflation ĐORĐE ĐUKIĆ
PROFESSOR AT THE UNIVERSITY OF BELGRADE FACULTY OF ECONOMICS
Rising inflation isn’t a temporary phenomenon resulting from the hitherto unseen expansive monetary policy applied following the outbreak of the Covid-19 pandemic. Economic indicators suggest that, on the supply side, most of these factors will serve to maintain cost inflation at a high level, compared to historical standards, for many years to come. The U.S. is awaited by a recession, while Europe - which is closer to us - can expect high inflation followed by a significant slowdown in economic activity
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e’re living in a time of inflation the likes of which hasn’t been seen for over 40 years, in a period of such conflict that hasn’t been seen in these lands since the end of World War II, and in conditions of the kind of disrupted value chains that we’ve never previously seen. For many people, regardless of their level of education in economics, the question of what are brought by day and night, and what they will wake up with tomorrow,
28
May
represents an unknown. CorD caught up with Dr Đorđe Đukić, professor at the University of Belgrade Faculty of Economics, a great connoisseur of the financial system and a witness to numerous inflation and hyperinflation episodes in the former Yugoslavia and Serbia, to discuss this new wave of inflation, which differs from all previous waves we’ve encountered on our territory. We also used this interview to discuss economic terms that we’ve rarely had opportunities to hear, if we exclude
the period 2008 financial crisis: recession, stagnation and stagflation. What awaits the world, and what awaits us? We’re again facing inflation after a long break, and this kind of inflation isn’t caused in large part by the printing of money at home, as was the case in the 1990s. How long do you expect this inflation to last?
The trend of rising consumer prices in industrialised countries, primarily the U.S. and the
