1970s Stagflation? Not Today’s Reality

Waves of conflicting economic data and lower revisions to economic growth have caused turbulence in the U.S. financial markets these past two weeks. Some analysts and commentators are concluding that a period of stagflation is here.

Stagflation was a phenomenon of the 1970’s economy, which was characterized by closed borders, stiff regulation and slow growth. In that environment domestic inflation had nowhere to go but up, and up it went when the OPEC oil price shocks hit in 1973- 74 and 1979.

Bloomberg.com