Should we worry about stagflation?

Pryce, Vicky (2021) Should we worry about stagflation? Birmingham City University, Centre for Brexit Studies Blog.

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Stagflation Is a term used to describe a period of no growth but with high inflation(1). This normally happens when an external shock sends prices higher , such as the oil price crises of the 1970s. Interest rates are then generally raised in reaction which lead to a slowdown in demand. Consumption and investment inevitably drop and a period of weak growth follows until inflation is brought back under control. But because that shock is external and not a result of market forces, the whole episode often lasts longer than it should, causing serious damage to he world economy. Stagnant growth and inflation=stagflation.

Item Type: Other
4 October 2021Published Online
Uncontrolled Keywords: Centre for Brexit Studies, CBS, Brexit, BCU, EU, European Union, UK, Birmingham City University, UK Government, UK politics
Subjects: CAH15 - social sciences > CAH15-03 - politics > CAH15-03-01 - politics
Divisions: Research, Innovation, Enterprise and Professional Services > Centre for Brexit Studies
Depositing User: Alex De Ruyter
Date Deposited: 07 Feb 2022 10:40
Last Modified: 07 Feb 2022 10:40

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