Longtime Deflationist Now Fears Inflation More | Lacy Hunt

For years, Lacy Hunt, one of the greatest living economists, has feared deflation would pull the economy into a prolonged morass of stagnation.

But now, the forces in play have shifted tectonically.

A new secular era has begun. One of rising inflation. And Lacy doesn't see it ending for years (as he writes about in his latest investor letter which you can download

And what consequences will it have for both households and investors?

To find out, click

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Adam’s Notes: Lacy Hunt (recorded 7.24.26)

EXECUTIVE SUMMARY:

• Lacy Hunt argues that the global production function has shifted adversely from the favorable globalization era of roughly 1990–2020 into a post-globalization period marked by higher costs, capital scarcity, and inward-shifting aggregate supply.

• This change raises the risk of higher inflation and lower real GDP growth, producing a structural bias toward stagflationary conditions rather than the disinflation that defined the prior decades.

• Debt remains problematic but