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> The inflation narrative is over, it’s all about a potential recession now. You can have stagflation: a recession with inflation. This is the economic boogeym
by voisin 4y ago
> The inflation narrative is over, it’s all about a potential recession now.
You can have stagflation: a recession with inflation. This is the economic boogeyman that literally every central banker has worried about for his or her entire career. Inflation is certainly not “over” - still running extremely hot relative to the last decade. Better than before the rate hikes, but by no means good or over.
- cmmeur01 4y agoAny normal time period would be considered “extremely hot” compared to the last decade+ of artificially low rates.
- voisin 4y agoCan you expand on why you think inflation was “artificially low”?
- danaris 4y agoI read it as the interest rates being artificially low...
- voisin 4y agoOk but then if interest rates were artificially low, then you would expect inflation to be artificially high but it wasn’t (at least by official measures). So the parent commenter is saying anything would be extremely hot given the last decade plus of artificially low rates, which is the exactly opposite result from what one would expect. (which begs the question: what does it mean to be artificially low? Compared to what?)