1970s-style stagflation now playing on central bankers’ minds

Shutterstock John Hawkins, University of Canberra “Stagflation” is an ugly word for an ugly situation – the unpleasant combination of economic stagnation and inflation. The last time the world experienced it was the early 1970s, when oil-exporting countries in the Middle East cut supplies to the United States and other supporters of Israel. The “supply shock” of a four-fold increase in the cost of...

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