The following illustration places the current economic situation in an inflation matrix and explicates possible developments. It shows possible scenarios based on different growth and inflation rates.
A scenario that has a destructive effect from an economic, political, and social perspective is stagflation….
The term (stagflation) designates an economic situation marked by economic stagnation (falling growth and high unemployment) combined with high inflation (rising prices). The term was coined during the economic trouble of the 1970s, when the United States went through a period of rising inflation rates along with an economic recession. Mainstream economists had considered this impossible
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