Budget deficits in developed economies cause global inflation: Putin

Moscow, Oct 30 : Excessive incentives, including serious budget deficits, by developed countries have resulted in general instability and rising prices globally, Russian President Vladimir Putin said on Saturday.

“I would like to note that the United States takes 40 per cent of the budget deficits of all G20 countries for 2020-2021,” Putin said via video link at the first session of the 16th Group of 20 (G20) Leaders’ Summit, Xinhua news agency rerported.

The persistent use of serious budget deficits creates a risk of high global inflation in the medium term, which decreases business activity and aggravates inequality, he warned.

Putin saw it important to prevent a stagflationary spiral, work towards the normalization of budgetary and monetary policies, and improve management of the structure of demand in order to reduce inequality and increase people’s well-being.(IANS)

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