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Inflationary Depression, not Reflationary Depression, according to the article. And isn't that what Stagflation is meant to refer to? http://en.wikipedia.org/
by swombat 17y ago
Inflationary Depression, not Reflationary Depression, according to the article.
And isn't that what Stagflation is meant to refer to?
http://en.wikipedia.org/wiki/Stagflation http://en.wikipedia.org/wiki/Stagflation
"Stagflation is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a significant period of time."
- steveplace 17y agoI just asked him and will put reply in this post, but I'm assuming that the difference is that stagnation seems to be zero growth, and depression remains negative. [update]Here's what he sent me: Pretty much the same thing. However, in the 1970's stagflation, there really was a more supply and demand driven component to inflation with extra pressure from wage growth. In our current situation, I see a huge component of deflation coming from credit and housing, and the inflationary component comes/will come via the currency. Compared to the 1970's this is less messy, in a way. it's very clean. Classid deflation from a burst credit bubble, and then classic currency-based inflation via lost purchasing power.