1970s Archive

Re: Roach-Stagflation

[Skip to the end] (an email exchange) A few of things: First, the rising wages in the 70’s led to bracket creep that put the budget in surplus in 1979 and resulted in a severe recession soon after. This time around it is unlikely the inflation takes much of a dent out ...Read More

Stagflation

Yes, the below analysis has also been the Fed’s position, up until this week’s speeches. It’s been about a crude/food/$ negative supply shock, supported by Saudis/Russians acting as swing producer and biofuels linking crude prices to food prices. The fed has called the price hikes relative value stories that they don’t want ...Read More