Part 14/16:
The Outlook: A Future of Increased Volatility and Transition
The overarching forecast emphasizes a period where:
Fiscal and monetary policies will continue to fuel macro instability.
Central banks' attempts to maintain artificial stability may backfire, leading to vicious cycles and explosive corrections.
Recessions and crises will be more vicious, sudden, and harder to contain—a phenomenon Minsky described as artificial stability breeding instability.
Inflation volatility is expected to rise, alternating between periods of high inflation and stagnation or even deflation. Asset markets must adapt to a new environment—one characterized by macro uncertainties and asset class rotations.