3th Feb 2026
Edinburgh Institute of Diplomacy and Economics Briefings
The affluent sustains K-shaped vulnerable stagflationary economy with wealth effect and dedollarization persists
-Divided Fed in laborious charge also with pressure coming from Trump regime
What is de-dollarization？Its effect differs according to its definition.Surely, money flows into the US equity market, but almost only to AI-related stocks, which sustains a masked stagflation economy, or K-shaped economy with sticky inflationary pressure. With the rampant arbitrary US economic sanctions, the world is looking for an alternative market to the US, though AI-related financial assets are hard to find, but the value of the dollar is certainly falling.
<An article against the dedollarization>
https://www.linkedin.com/feed/update/urn:li:activity:7423701231904305152?updateEntityUrn=urn%3Ali%3Afs_updateV2%3A%28urn%3Ali%3Aactivity%3A7423701231904305152%2CFEED_DETAIL%2CEMPTY%2CDEFAULT%2Cfalse%29
<AI-driven economy>
<uncertain economy>
https://www.caixabankresearch.com/en/economics-markets/activity-growth/us-2026-outlook-resilience-frailties
https://finance.yahoo.com/personal-finance/banking/article/what-is-a-k-shaped-economy-and-whats-causing-the-divide-213458866.html
<Only the affluent sustains the US economy with wealth effect>
It Is a K-Shaped Economy for US Consumers
https://finance.yahoo.com/news/consumer-spending-powers-the-us-economy-a-k-shaped-economy-will-further-test-this-dynamic-in-2026-110830708.html
https://www.cbsnews.com/news/k-shaped-economy-low-middle-high-income-households/
<Only the affluent are getting rich considering the CPI growth>
https://www.northerntrust.com/africa/insights-research/2026/weekly-economic-commentary/the-world-depends-on-wealth-effects
<Sticky inflation>
https://www.equiti.com/jo-en/news/global-macro-analysis/us-growth-is-solid-as-sticky-inflation-pressures-the-fed/
<Depreciating dollar>
The US Dollar Index is at its lowest level in 4 years, down 16% from its peak in September 2022.
byu/Key_Brief_8138 ineconomy
<Dollar index is measured against European currencies>
https://www.truedata.in/blog/what-is-dollar-index-and-how-does-it-work