Andrew Kelly | Reuters
The combination of stagnation and inflation is a rare period of low growth and rising prices.
Stagflation has come back on investors’ radar as many fear that the burst in post-pandemic activity could start to slow, while inflation may accelerate to high levels with an ultra-easy monetary policy in place.
During the 1970s, stagflation was first recognized when an oil shock and a depreciation in the dollar led to a simultaneous surge in price pressures and the unemployment rate.
Original news source Credit: www.cnbc.com