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Topic: Stagflation


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In the News (Tue 10 Nov 09)

  
 All Business: Wall Street weighs stagflation threat   (Site not responding. Last check: 2007-10-21)
Stagflation in the 1970s grew out of the OPEC oil embargo that caused oil prices to quadruple.
Given that scenario, economists are slashing their estimates for overall growth for the year to around 3.4 percent, down sharply from the 4.4 percent expansion for all of 2004.
Yet the prospect of stagflation can't be ignored, especially for the Fed as it forges ahead with its interest-rate policy.
www.post-gazette.com /pg/05134/501652.stm   (731 words)

  
 The End of Prosperity
Stagflation was the kiss of death for the neoclassical/Keynesian synthesis.
Supply-siders claimed that stagflation was the result of diminishing capitalism's normal creativity by: 1) taxing away the profits and incomes that are the reward for successful entrepreneurship; 2) burdening business with too many costly and ineffective regulations; and 3) making it too easy for people to live well without working through overly-generous welfare payments.
The institutionalist theory of stagflation is explained clearly in Heilbroner and Thurow's chapter on inflation.
online.bcc.ctc.edu /econ100/ksttext/stagflat/STAGFLTN.htm   (4175 words)

  
 Stagflation   (Site not responding. Last check: 2007-10-21)
Stagflation, the combination of high unemployment and high rates of INFLATION.
Stagflation in the 1970s and 1980s has been caused partly by "supply shocks"; (increases in price).
If governments respond to a large supply shock by maintaining total expenditure, a severe RECESSION will result because the increased expenditure on energy or food means reduced expenditure on other goods and services, and therefore reduced output and employment.
www.thecanadianencyclopedia.com /index.cfm?PgNm=TCE&Params=A1ARTA0007648   (166 words)

  
 BBC News | Business | Is stagflation back?
It is called "stagflation", and a number of economists and politicians are suggesting that economies around the world are heading in that direction.
In the '70s it suffered from a nasty case of stagflation, and now that the country's economy is ending a period of high growth there are worries that it will not manage a "soft landing", a gentle economic slowdown that keeps the economy above water while inflation cools.
Stagflation is the combination of inflation and recession - an economy which begins to shrink while prices still continue to rise.
news.bbc.co.uk /1/hi/business/127516.stm   (586 words)

  
 Econbrowser: Stagflation
The term "stagflation" was introduced in the 1970's when the economy simultaneously experienced stagnation of real output growth and an acceleration of inflation.
Stagflation will happen because economic shifts to more competetive areas will not have taken place, so industry will sit uncompetitive, but there will be less support for the dollar, rendering imports much more expensive, with all the pass-through that may engender.
The stagflation of the '70s was associated to the petrodollars and increasing profits of the domestic oil producers.
www.econbrowser.com /archives/2005/10/stagflation.html   (9285 words)

  
 Stagflation at opensource encyclopedia   (Site not responding. Last check: 2007-10-21)
Stagflation is a portmanteau word used to describe a period with a high rate of inflation combined with an economic recession.
The Phillips curve, which is associated with Keynesian economics suggests that stagflation is impossible because high unemployment lowers demand for goods and services which lowers prices.
Stagflation occurred in the economies of the United Kingdom in the 1960s and 1970s and the United States in the late 1970s.
www.wiki.tatet.com /Stagflation.html   (190 words)

  
 PUERTO RICO HERALD: Stagflation threatens Puerto Rico’s economy   (Site not responding. Last check: 2007-10-21)
The term stagflation, the combination of stagnancy and inflation, was thus born.
Today, stagflation, which impacted the U.S. mainland’s economy in the late 1970s, seems to perfectly describe Puerto Rico’s current economic situation, which can find the roots of many of its problems embedded in the island’s political status and its obsolete economic model.
The stagflation that is affecting the island has a direct impact on every aspect of living, working, and doing business in Puerto Rico.
www.puertorico-herald.org /issues2/2005/vol09n34/CBStagflation.shtml   (4341 words)

  
 Shades of stagflation - Feb. 20, 2003
Stagflation is a relatively new beast in economic lore, arising for the first time after an Arab oil embargo in 1973-74 nearly quadrupled prices for crude oil and retail gasoline in the United States.
Almost nobody expects oil prices to quadruple as they did in the ' 70s -- oil would jump to $100 a barrel from $25 not long ago if that were the case -- or the economy to fall into the deep, dark recession.
Nevertheless, an extended period of higher prices and sluggish growth, a sort of baby stagflation, would be a headache for the economy.
money.cnn.com /2003/02/20/news/economy/stagflation   (1092 words)

  
 Safe Haven | The Most Misleading Words
Stagflation is a word that was coined by economists during the 1970s to describe what was previously thought to be an impossible, or at least highly improbable, situation.
Stagflation, however, is not just an unnecessary word; it's a misleading one.
But if stagflation were simply an unnecessary or redundant word it wouldn't have done so well in the "Financial World's Most Misleading Words" contest.
www.safehaven.com /article-4609.htm   (738 words)

  
 The Seattle Times: Business & Technology: Greenspan upbeat but warns of "stagflation"
He spun a tale of two economies before the House Budget Committee, reassuring Americans that the economy now is emerging from a midsummer "soft patch" but warning that "stagflation" — higher inflation co-existing with slow growth — could arise in the not-too-distant future.
There is a risk that the large deficit —; $422 billion this fiscal year alone, according to the Congressional Budget Office — could become much more dangerous as the baby-boom generation begins to retire, he said.
Stagflation became a significant problem in the 1970s as higher oil prices and higher inflation gripped the economy.
seattletimes.nwsource.com /html/businesstechnology/2002030611_greenspan09.html   (686 words)

  
 Investing in Case of Stagflation
Stagflation is a recurring topic when the economy is growing slowly or not at all and people feel gloomy.
Instead, stagflation, the sum of stagnation and inflation, appeared in many developed countries.
Economists Robert Barsky and Lutz Kilian suggested that stagflation in the 1970s was caused more by imperfect monetary policies than by oil shocks.
advisor.morningstar.com /advisor/doc/article/0,8832,4265,00.html?email=i1122A1   (837 words)

  
 The Return of Stagflation - Mises Institute   (Site not responding. Last check: 2007-10-21)
Stagflation is a term that originated in the early 1970s to identify the simultaneous occurrence of recession and inflation—a phenomenon that Keynesian theory had previously suggested was impossible.
In Keynesian theory, recessions (and the unemployment implied by them) are cured by inflation, while inflations are cured by recessions.
This policy was facilitated by the increase, or the reappearance in the case of the United States, of budget deficits at the federal level.
www.mises.org /fullstory.asp?control=1181   (1116 words)

  
 Search Results for "Stagflation"
stagflation An economic phenomenon of the late 1960s and 1970s characterized by sluggish economic growth and high inflation.
The word is a blend of stagnation and...
Stagflation-the combination of high unemployment and economic stagnation...
www.bartleby.com /cgi-bin/texis/webinator/sitesearch?FILTER=&query=Stagflation   (145 words)

  
 Ezra Klein: Stagflation
Stagflation occurs when the economy has high inflation combined with economic stagnation, unemployment, or recession.
The question, in large part, is whether or not oil prices have as severe an effect on the economy as they're reputed to (James Surowiecki, for instance, has a piece in this week's New Yorker arguing that they don't) and whether or not they're going to drop back down in the near future.
Stagflation was all the rage (or at least the cause of all the rage) when I was a lad.
ezraklein.typepad.com /blog/2005/04/stagflation.html   (662 words)

  
 WorldNetDaily: Stagflation stuns Europe
This "stagflation," combined with the European Union's disjointed fiscal and monetary policy regimes, threatens to foment a protracted recession in Europe that will quickly spread eastward to Central Europe and the Commonwealth of Independent States.
This combination of events fosters stagflation -- the rueful marriage of stagnation and inflation.
Stagflation is difficult to combat, especially when accompanied by external forces or rigid domestic policies.
www.worldnetdaily.com /news/article.asp?ARTICLE_ID=23012   (1489 words)

  
 MSNBC.com: Not your father's stagflation - Martin Wolk: Eye on the Economy - MSNBC.com   (Site not responding. Last check: 2007-10-21)
Still, economic growth is clearly slowing at the same time inflation is rising, an unpleasant alignment of factors that could pose a tough puzzle for the Federal Reserve in the near future as central bankers consider whether to continue raising interest rates.
Princeton economist Paul Krugman wrote in his New York Times column this week that stagflation fears were behind last week’s sharp drop in stock prices, which was partly reversed in a big rebound Thursday.
Other economists took issue with the description, noting that the term stagflation was coined to describe far different conditions.
www.msnbc.msn.com /id/7602530   (774 words)

  
 Specter of stagflation lurks in wings amid uncertainties   (Site not responding. Last check: 2007-10-21)
In periods of stagflation, economic growth remains very weak, but inflation roars ahead -- as it normally would during times of rapid expansion.
It's a term that was coined in the 1970s after the OPEC oil embargo caused a dramatic surge in the cost of crude oil and gasoline and sent inflation soaring.
The key to avoiding stagflation will be a sharp reduction in oil prices and an immediate turnaround in the economy.
seattlepi.nwsource.com /money/110684_stagflation03.shtml   (769 words)

  
 Incredible Charts: Markets: Stagflation
Though very few analysts believe "stagflation" -- a state in which inflation is high, even as economic growth is slow, as it was throughout much of the 1970s -- is in train, Greenspan said policy makers were aware of the risks of stagflation and trying to fight it.
But he added that sharply higher oil prices were the cause of stagflation in the '70s, and noted that current oil prices weren't nearly as high, adjusted for inflation, as they were then.
Stagflation could be the end of western style capitalism as we know it...
www.incrediblecharts.com /forums/messages/6/466754.html   (1277 words)

  
 EH.Net Encyclopedia: The United States Public Debt, 1861 to 1975
The exception was 1969 when a high rate of inflation boosted nominal revenues which were offset by the increased nominal cost of servicing the debt.
By 1975, the United States was suffering from the high inflation and high unemployment of stagflation, and the budgetary deficits seemed to take on a life of their own.
And, the belief among some influential Keynesians that more tinkering with the economy was all that was needed to fix a stagflating economy created an almost self-perpetuating growth of the public debt.
www.eh.net /encyclopedia/article/noll.publicdebt   (5242 words)

  
 America's Debate -> Stagflation on the horizon?
Defined as a noxious blend of stagnant growth and rising prices, stagflation last appeared in force in the 1970s, when it bedeviled U.S. policy makers and gradually degraded the standard of living of average Americans.
This is what John Makin of the American Enterprise Institute had to say about the subject and one should bear in mind that the AEI is about as conservative and pro-corporate as think tanks come.
Some economists are outraged at Makin, saying he's exaggerating current conditions by using "stagflation," a term coined during the malaise of the 1970s to describe the combination of slower growth and higher inflation.
www.americasdebate.com /forums/index.php?showtopic=7545   (527 words)

  
 stagflation
The “stagflation” (economic stagnation alongside roaring inflation) that was common in the 1970s is now a worry once again.
There was an economic nightmare during the 1970s that may just be coming back to cause sleepless nights for American investors: stagflation.
Stagflation is the worst of both worlds: inflation and recession.
www.internetional.se /toft/stagflation.htm   (331 words)

  
 Mild case of stagflation could get worse - Business - www.theage.com.au
In the 1970s, soaring prices of oil and other commodities led to stagflation - a combination of high inflation and high unemployment, which left no good policy options.
What few seem to have noticed, however, is that a mild form of stagflation - rising inflation in an economy still well short of full employment - has already arrived.
But the fact that we're already experiencing mild stagflation means that there will be no good options if something else goes wrong.
www.theage.com.au /news/Business/Mild-case-of-stagflation-could-get-worse/2005/04/18/1113676701693.html   (763 words)

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