Bloomberg/Narayanaa Kocherlakota/11-30-2022
“The US Federal Reserve’s pitched battle with rising prices has given rise to widespread concerns about a possible return of stagflation — the combination of high unemployment and high inflation that afflicted the US in the 1970s. Actually, a bit of stagflation is just what the Fed should be — and appears to be — aiming for.”
USAGOLD note: The economy needs stagflation like the world needs another round of covid lockdowns. At the same time, it is beginning to look like stagflation is what we are going to get whether we want it or not.
