Stagflation is when you have the rare combination of economic recession or slow down, and inflation. Stagnation + inflation.
This leaves a central bank in an awkward position. The tools at its disposal are only useful for combatting one of these problems at a time.
If they try to tighten the money supply and raise rates to deal with inflation, it could make the coming recession worse.
So you end up in a situation where there's no clear policy prescription to get out.
This typically only happens when you have a price shock with a key commodity... which is exactly what happened with oil.
I personally don't think any of this is random. Part of the great reset plan imo.
Stagflation is when you have the rare combination of economic recession or slow down, and inflation.
This leaves a central bank in an akward position. The tools at its disposal are only useful for combatting one of these problems at a time.
If they try to tighten the money supply and raise rates to deal with inflation, it could make the coming recession worse.
So you end up in a situation where there's no clear policy prescription to get out.
This typically only happens when you have a price shock with a key commodity... which is exactly what happened with oil.
I personally don't think any of this is random. Part of the great reset plan imo.
Stagflation is when you have the rare combination of economic recession or slow down, and inflation.
This leaves a central bank in an award position. The tools at its disposal are only useful for combatting one of these problems at a time.
If they try to tighten the money supply and raise rates to deal with inflation, it could make the coming recession worse.
So you end up in a situation where there's no clear policy prescription to get out.
This typically only happens when you have a price shock with a key commodity... which is exactly what happened with oil.
I personally don't think any of this is random. Part of the great reset plan imo.