US Stagflation Risk 'Quite High': Nobel Economist Warns of Iran War Impact
On Monday, March 18, Joseph Stiglitz warned that the war in the Middle East has placed America at high risk for stagflation. Speaking to AFP before recent strikes by U.S and Israeli forces against Iran began February 29th (or Feb 30 as per some sources), Nobel Prize-winning economist said Trump's actions have destroyed confidence within American society, potentially causing a severe economic downturn in the United States that could last years or even decades if not addressed.
Key Points
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1Nobel Prize-winning economist Joseph Stiglitz warns that the war in the Middle East places high risk of stagflation on US economy.
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2Stiglitz stated these risks existed even before Israel and Iran began military strikes, indicating pre-existing economic vulnerabilities.
Developments
Perspectives
The war in the Middle East has put the United States at high risk of falling into stagflation.
— [Mar 18, 01:41] Stagflation Risk in US 'Quite High': Nobel-Winning Economist Stiglitz (Myrepublica.nagariknetwork.com)La guerre contre l'Iran risque de faire basculer les États-Unis dans la stagflation.
— [Mar 16, 20:45] Joseph Stiglitz craint que le conflit iranien provoque une 'stagflation' aux USA (BFMTV)"El riesgo de estancamiento e inflación en Estados Unidos es bastante elevado": el Premio Nobel José Esteban Rodríguez.
— [Mar 16, 20:45] El premio Nobel advierte sobre la alta probabilidad de una 'stagflación' (Eleconomista.com.mx)"El riesgo estancamiento-inflación en Estados Unidos es bastante elevado": Stiglitz
— (Expansion.mx)Nobel Prize-winning economist Joseph Stiglitz warned that U.S.-Israel strikes against Iran have pushed America close to stagflation by halting oil flow through the Strait of Hormuz and causing global prices to surge 40–50 percent. He identified the United States as uniquely vulnerable due to its reliance on this waterway, noting similar risks existed but were less clear for Europe amidst ongoing inflationary pressures from energy costs and supply chain fragmentation.