OECD warns of worsening global 'stagflation' risk due to Middle East conflict, central banks may face a dilemma between fighting inflation and maintaining growth According to BlockBeats, on May 19th, Matthias Coleman, Secretary General of the Organisation for Economic Co operation and Development (OECD), stated that the escalating Middle East conflict is dealing a "double blow" to the global economy - dragging down economic growth on one hand and pushing up inflation on the other. Central banks around the world may be forced to make a difficult balance between "anti inflation" and "maintaining growth". Coleman said that the OECD has issued a warning on related risks in its mid-term economic assessment in March this year and plans to update the global economic outlook on June 3. He pointed out that with the rise in oil prices and the spillover of energy shocks, if it further triggers a "second round of inflation effects" such as wage increases, even if economic growth has slowed down, central banks around the world may still have to maintain tightening policies. According to reports, the recent G7 finance ministers and central bank governors' meeting held in Paris originally focused on long-term structural issues such as the US fiscal deficit, but with the escalation of the Middle East situation and the global bond market sell-off, energy prices and inflation risks quickly became the focus of the meeting. [Original link]