The Globe and Mail Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account Getting audio file ... This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow Morgan Stanley chief economist Chetan Ahya published a report Monday outlining the five reasons investors must prepare for inflation pressure, “Private sector risk appetite has experienced limited scarring: As we have argued at length, the pandemic was an exogenous shock. Policy-makers were unfettered by moral hazard concerns and had little hesitation about underwriting household and corporate income losses to an unprecedented degree. In particular, while unemployment cost US households US$330 billion in wage income, they have already received US$1 trillion in aggregate in transfers … the loss from unemployment overstates the economic loss … our unemployment rate forecasts are more bullish than the consensus. As things stand, about 78% of US job losses have come in COVID-19- sensitive sectors, which will rebound rapidly … Third, policy-makers are attempting to run the economy red-hot, with the aim of returning the economy to its pre-COVID-19 unemployment rate … Fourth, policy-makers are pushing for further transfers to low-income segments, and they are likely to continue reining in the trio of tech, trade and titans in an effort to mitigate the impacts of a lower wage share and higher income inequality. The recession’s disproportionate impact on lower-income households has exacerbated the pre-existing issue of inequality, increasing the impetus for policy-makers to act.”