[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 of the deficit […]
Tag Archives: Stagflation
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 turning into an […]
Greenspan sees early signs of U.S. stagflation
Agree, if food/crude/import&export prices keep rising, there will be serious fireworks between congress and the fed. This will include blaming the fed for the high gasoline prices, for example. Greenspan sees early signs of U.S. stagflation U.S. economy is showing early signs of stagflation as growth threatens to stall while food and energy prices soar, […]