Population Statistic: Read. React. Repeat.
Thursday, February 21, 2021

Macroeconomics doesn’t get much hairier than when stagflation, that old invisible-hand smacker from the 70s, makes a comeback.

“[The Federal Reserve is] cutting rates with a bill to be paid later,” said John Ryding, chief United States economist at Bear Stearns. “The question is not, will we get inflation, but how much will it cost to stuff the genie back in the bottle. This has the feel of 1970s stagflation.”

Over the last 12 months, consumer prices are up 4.3 percent on average, according to the Labor Department. The core index of consumer price inflation, which excludes food and oil, was 2.5 percent higher in January than a year earlier, significantly above the Fed’s unofficial comfort zone of a 1 to 2 percent underlying inflation rate. That’s a far cry from the double-digit inflation rates that battered the economy at times in the 1970s, but still worrisome.

What’s next? A re-experiencing of “malaise forever”?

by Costa Tsiokos, Thu 02/21/2008 10:43:42 PM
Category: Politics, Comedy, Business, Society
| Permalink | Trackback |

1 Feedback »
  1. That 70s Show!…

    Seems like some of the econoblogs (and non-econ blogs and other sources) that I subscribe to such as Econobrowser, the NYTimes, Paul Krugman, Population Statistic, Jon Taplin, the Wall Street Journal, and the Big Picture are talking stagflation.


    Trackback by Akkam’s Razor — 02/22/2008 @ 05:37:57 PM

RSS feed for feedback on this post.

Leave a comment

PLEASE NOTE: Various types of comment moderation may be triggered once you hit the "Say It!" button below. Common causes for this are the inclusion of several hyperlinks and/or spam words in the comment field. Please do not hit the "Say It!" button more than once. If you feel your comment is being blocked without cause, feel free to email me about it.