Economy Has Plenty of Offramps Before Stagflation City - Bloomberg

With the U.S. economy slowing and inflation rising, there are growing fears of stagflation, a combination of stagnant economic growth and high inflation. The example that comes immediately to mind for most people is the late 1970s and early 1980s, when inflation, interest rates and unemployment all surged to double digit rates, far outpacing real growth in gross domestic product.

The economy is nowhere near in as bad a shape today, but real growth and inflation are moving in the wrong directions. The Atlanta Fed’s nowcast of real GDP growth, net of inflation, estimates that the economy grew at an annual rate of just 1.2% in the third quarter, well below the economy’s long-term growth rate of 3.1% since 1947.

Adblock test (Why?)

Economy Has Plenty of Offramps Before Stagflation City - Bloomberg
Read More