War, Inflation Knock World Economy Off Balance
Business surveys show soaring prices in West and fallout from Russia’s attack on Ukraine are infecting global economy
The global economy is sputtering and financial markets are flashing red, reflecting a sense on Wall Street that a sharper slowdown in worldwide economic activity is likely inevitable.
The culprits are surging inflation, a robust central-bank response, anxious investors and the impact of Russia’s aggression in Ukraine. The U.S. economy has largely escaped the worst of these ills, but a rising dollar is punishing the rest of the world at a time when price increases in many places are already outpacing incomes.