Stagflation fears
definition: "stagflation" is the mixture of stagnation (low economic growth) with inflation (rising prices)
The coincidence of worldwide inflation scare and signs of U.S. recession and global growth slowdown have revived the 1970s stagflation specter. Important differences exist though such as benign wage pressures, the demand-driven nature of the current slow-motion commodities boom, central bank commitment to price stability, and the prospect of further housing deflation. NBER economists are in the midst of re-assessing the Great Inflation. Check out: “Commodity Prices vs Recession: Difference Between Now and 1970s Stagflation” and “Retrospective on the Great Inflation: NBER Pre-Conference Papers”
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