Stagflation: US experiences
Public concern about stagflation – an unfortunate combination of stagnating, or perhaps even negative, growth and high inflation – is rising because of the pandemic. Commentators are recalling the 1970s and early 1980s, a period associated in the US and many other countries with sharp declines in real GDP, inflation spikes above 10% per annum, and volatile stock prices. Could we see similar conditions today?
