"Stagflation" was coined ages ago when I was still in college. It describes an economic period of both inflation and flat growth. The best description I've heard was provided by Rich Karlgaard, publisher of Forbes. He said:
"Stagflation is present when gas and grocery prices are rising faster than your paycheck is - and in an economy that is strong enough to employ you but not strong enough that you feel emboldened to ask for a raise."
There are three ways to defeat stagflation: (1) Tighten the money supply. (2) Restrict credit. (3) Lower taxes.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment