Financial Times/Valentina Roma and Alan Smith/5-1-2022
“The prospect of stagflation’s return strikes fear into policymakers because there are few monetary tools to address it. Raising interest rates may help reduce inflation, but increased borrowing costs would further depress growth. Keeping monetary policies loose, meanwhile, risks pushing prices higher.”
USAGOLD note: How bad could it get? Only as bad as the 1970s in the final analysis, but not exactly like the 1970s, yet close enough for the word “stagflation” to still apply.
