Most do not use the word "stagflation" outright (higher rates + slower growth = stagflation) since there is no consensus around the degree of growth slowing and rates rising.
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Depending on how the incoming data looks - stagflation, anyone?
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Then came stagflation, which opened the door for the supply-siders.
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Once upon a time, we had stagflation and low corporate profits.
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"This is the first time in the recovery that we have had worries, in my view, about [stagflation] ... and when you have a stagflation mindset in the stock market, it's a tough path for the bull."
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It took him creating two recessions as a means to end stagflation.
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The 1970s, when stagflation robbed the ordinary American of income and opportunity?
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They had a word for such a condition in the 1970s: stagflation.
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And Jimmy Carter's presidency was plagued by foreign policy setbacks and stagflation.
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Stagflation is not a good number to associate with equity market performance.
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It's like the stagflation the US suffered through in the 1970s, only worse.
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Go deeper: Top strategists warn about stagflation risk as China trade tensions remain
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Richard Nixon's 10 percent import surcharge contributed to the stagflation of the 85033s.
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Richard Nixon's 10 percent import surcharge contributed to the stagflation of the 1970s.
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The "stagflation" of the 22013s killed off the idea of a stable Phillips curve.
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The 1970s saw stagflation and Soviet inroads across vast swaths of Africa and Asia.
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Kerry also addressed growing discontent voiced by Argentines over an economy beset by stagflation.
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This is not just a road to stagnation, it is a road to stagflation.
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"Stagflation is a combination of economic stagnation, recession, and high inflation," he said. 3.
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And he did it because inflation was going up, the stagflation at the time.
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His book about stagflation, "Marketing in a Slow-growth Economy," was published by Praeger Publishing.
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Each phase ended in a crisis (stagflation in the 1970s, a credit crunch after 33).
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Argentina has entered stagflation, with near zero growth and inflation of about 25 percent annually.
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The 1970s saw the post-war consensus consuming itself in strikes, stagflation and general discontent.
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But the truth is that stagflation isn't something on the horizon, it has already arrived.
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The "stagflation" of the 1970s depressed stock prices to historic lows relative to corporate earnings.
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Tepper's research points to a recession in mid-2020 followed by a period of stagflation.
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Free-market ideas were absorbed into the managerial consensus after the stagflation of the 1970s.
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In other words, some pieces of the "stagflation" scenario worrying Greenspan are already in place.
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Instead, it had become a symbol of things gone wrong, of stagflation and red tape.
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If stagflation does rear its head, that would be a problem for consumers, of course.
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Many economists credit Volcker&aposs policies as a significant contributor to the end of stagflation.
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EISEN: HOW DOES THAT TAKE YOU TO STAGFLATION, THIS IDEA OF PROLONGED SLOW GROWTH WITH INFLATION?
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At this juncture, a new economic monster appeared: stagflation, a chimera of inflation, recession, and unemployment.
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Inflation may rise in the quarters ahead, but positioning for a stagflation repeat makes little sense.
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When stagflation struck in the 1970s, both Democrats and Republicans panicked and embraced Bork's deregulatory ideas.
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That's why some experts still aren't ruling out stagflation as a threat right around the corner.
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The stagflation of the 1970s versus the low inflation of the following decades is a perfect example.
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"You've got a stagflation mindset, and that really limits the path for the bull market," he said.
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But in recent years, it has been plagued with corruption scandals, a lag in productivity, and stagflation.
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In 22008, a major recession hit, miring the American economy in stagflation, and deindustrialization began in earnest.
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Economists should question long-held assumptions, as they did after both the Depression and the 1970s stagflation.
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When you print money and run a budget deficit, you could end up with stagflation, said Roubini.
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But inflation that comes without economic growth — otherwise known as stagflation — is where things could get complicated.
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Instead of healthy inflation we get stagflation, rates maybe rise too quickly or they don't rise at all.
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Jiang Chao, an economist with Haitong Securities, a broker, says it could end up making for "classic stagflation".
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Carter blamed high energy prices for "stagflation," as well as unions—the largest army in the Democratic base.
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Another lurch lower in the pound could trigger another surge in prices, the hallmarks of a 'stagflation' economy.
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He argues that the world might enter a period of "stagflation" — that is, low growth and high inflation.
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All of them responded to the dominant problem of the moment, which was the stagflation and economic sclerosis.
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Even Ford's loss in 2008 was in part thanks to stagflation and the weak recovery from the energy crisis.
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Beginning in 1973, policy makers were confronted with both rising inflation and a contracting economy, a condition dubbed stagflation.
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Stagflation and the middle-class revolt The rise of inflation in the 1960s and 1970s caused another economic rethink.
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But the threat of stagflation -- the term used to describe an economic slowdown coupled with rising prices -- is real.
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Nobody thinks of Carter-era stagflation as a prosperous time for the United States, but the debt-to-G.
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For those who lived through the stagflation of the early 1990s, inflation is something to be genuinely concerned about.
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The "Butskellite" consensus that had held sway since the second world war was consumed by stagflation and excessive wage demands.
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As bond yields increased (prices down) during the stagflation of the 20173's, stock prices went lower or simply stagnated.
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The 444-day seizure of American Embassy personnel by Iranian militants, the bitter aftertaste of Vietnam and stagflation certainly contributed.
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Citi analyst Mark Schofield said rising oil prices risk causing 'stagflation', which could create a particularly "hostile environment" for risk assets.
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"Stagflation will linger into the president's first year regardless of the debt deal and the removal of capital controls," Kleiman said.
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With the clock now ticking on Brexit talks, analysts expected the U.K. would face an economic slowdown, stagflation and corporate defections.
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Previously there had seemed to be a trade-off between inflation and unemployment; the stagflation era showed both could be high.
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Tepper also favors gold as a guard against stagflation, an environment where inflation reaches highs, economic growth slows and unemployment spikes.
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These two factors combined to produce an economic nightmare: an even worse version of the stagflation Americans experienced in the 613s.
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His book, "Marketing in a Slow-Growth Economy: The Impact of Stagflation On Consumer Psychology," was published by Praeger in 1980.
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These two factors combined to produce an economic nightmare: an even worse version of the stagflation Americans experienced in the 1970s.
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In fact, the U.S. economy—and indeed the entire developed world—is in the beginning stages of an unprecedented breakout of stagflation.
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HSBC said in a note to clients that Trump's policies and lack thereof would hurt the economy, earnings and possibly spark stagflation.
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Memories of disco-era oil shocks, gas lines and stagflation loom large, passed on as lore from my generation to our kids.
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This has led to worries that the US could fall back into "stagflation," a period of high inflation and low economic growth.
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Some economists are even resurrecting the word "stagflation" — a dreaded condition in which inflation rises at the same time that growth stagnates.
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In any event, Hu said, there is little concern for stagflation — a run-up in prices with slowing growth, reminiscent of Japan.
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In the late 1970s, the American economy was mired in a state known as "stagflation" — meaning high unemployment and fast-rising prices.
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YOU'VE BEEN WARNING ABOUT SLOW GROWTH IN THE UNITED STATES, PRODUCTIVITY PROBLEMS AND NOW YOU'RE INTRODUCING A NEW WORD TO YOUR DIAGNOSIS, STAGFLATION.
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We would risk returning with a vengeance to stagflation — the ugly combination of inflation and economic stagnation that we tasted in the 1970s.
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It needs to watch out for another threat: a troublesome economic trend known as stagflation, which is when sluggish growth and inflation happen simultaneously.
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And, as the theory goes, in the end, this won't even get you sustainable low unemployment — just the dreaded "stagflation" of the late 1970s.
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And when Republican Ronald Reagan faced stagflation in the 1980s, he went back in time and borrowed JFK¹s supply-side tax-cut program.
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Although growth has returned and the stockmarket is booming, the country still suffers from stagflation: a weak recovery combined with stubbornly high price pressures.
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As Sudan struggles with corruption, poverty, and stagflation, its government has been combatting isolation in the international community by investing in its telecom infrastructure.
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Then came the Vietnam War and the Watergate scandal, furthering national cynicism about government, followed by stagflation and foreign policy setbacks in the 1970s.
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We graduated into the stagflation in the late '70s, and the economy in the early '80s was a mess, and we recovered from that.
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Or it could be a disaster in which the Fed races to keep a lid on inflation, causing growth to stall, the dreaded stagflation scenario.
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Equity investors should brace themselves to walk the tightrope between "stagflation" and "reflation," according to Peter Oppenheimer, the chief global equities strategist at Goldman Sachs.
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"Populist policies lead to stagflation, a portmanteau of low economic growth (driven by restrictions on trade) and inflation spurred by excessive public borrowing," MSCI wrote.
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Think, for example of "stagflation" in the 1970s, the "great moderation" in the 1990s and the early 2000s or indeed "secular stagnation" in recent years.
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But when stagflation flummoxed the Keynesians it cost them their near-monopoly on political advice-giving, and laissez-faire was rereleased into the political sphere.
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The threat of stagflation — a toxic combination of a slowing economy combined with rising prices — could make Fed chair Jerome Powell's job much more difficult.
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The two great oil shocks in the 1970s were unambiguously bad for Western economies—ushering in stagflation and transferring spending power to the oil-producing countries.
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"Stagflation in the U.K. is a risk and it may grow from here and is not a reason to be bullish on the pound," Marinov added.
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In the BofAML survey, 87 percent of fund managers said protectionism would boost inflation and stagflation, the latter a term for sluggish growth with higher prices.
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AND I THINK THAT THE BOND MARKET BUBBLE IS NOW BEGINNING TO UNWIND, AND THAT IS GOING TO BRING US ULTIMATELY INTO A STATE OF STAGFLATION.
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All this debt engenders the stag part of stagflation because it is difficult to grow and invest for growth in an economy under such high debt burdens.
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An unprecedented accumulation of unproductive government debt that is fueled by a massive increase in the global base money supply is a perfect recipe for worldwide stagflation.
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Donald Trump's economic policy overhaul and massive spending could result in stagflation, throwing a wrench into his pro-growth plans, UBS' Art Cashin told CNBC on Monday.
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Economists often cite Nixon's pressure on then-Chairman Arthur Burns to keep interest rates low as one of the causes of stagflation, which devastated the U.S. economy.
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However, he said John F. Kennedy tackled a recession by lowering taxes and Ronald Reagan beat back stagflation and helped drive an economic boom in the 1980s.
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The combination of subdued economic growth and rampant inflation — also known as stagflation —would likely create a "particularly hostile environment for risk assets," the U.S. bank added.
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For many, recent events evoke memories of a 1970s US economy stuck in "stagflation," a period of higher inflation with no economic growth to show for it.
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Varma said that worries of stagflation — a situation where inflation is high but growth is low, which leaves policymakers in a bind — are a short term issue.
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Reached Wednesday after the CPI release, Paulsen said the inflation numbers coupled with an unexpected 0.3 percent January retail sales decline raised the ugly specter of stagflation.
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"Stagflation" is a term used to describe relatively low levels of economic growth combined with high inflation levels which, Oppenheimer argued, could result in a headache for investors.
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The high unemployment component of stagflation also is unlikely to prevail; current Fed forecasts have the jobless rate at 4.1 percent through 2019, the lowest since December 2000.
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Monetary expansion would *not* cause stagflation; fiscal expansion would *not* cause crowding out; claims that austerity would solve currency crises by restoring confidence were not to be believed.
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"It's hard to see stagflation coming, but you could see consumer prices accelerate at the same time the economy slows down," said Brian Nick, chief investment strategist with Nuveen.
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In the CNN interview, Greenspan said the U.S. could be headed into "stagflation," an economy characterized by high inflation and high unemployment such as was seen in the 1970s.
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"Even [former Fed chairman] Alan Greenspan is forecasting stagflation, and he ought to know because he wrote the playbook that Ben Bernanke and Janet Yellen are following," said Schiff.
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"That's sort of a stagflation sort of Fed tightening, where they have weak growth but they have to raise rates in the face of rising wage pressures," he said.
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Paulsen has been more in the latter camp, even warning that a moderate bout of 1970s-era "stagflation," or low growth and high inflation, could be on the way.
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The argument for making monetary policy insular from politics can be traced back to the stagflation years in the 21625s when economists started recognizing the importance of dynamic inconsistency.
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For those unfamiliar with the term, stagflation was a major problem for the US economy in the 1970s, when there was an oil shock and surging prices for gas.
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Now, the Fed is confronting "the coexistence of low inflation and low unemployment," a phenomenon that inverts the "stagflation" experience of the 1970s, when both inflation and unemployment climbed.
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If the Fed complies with the undue pressure to keep interest rates low, as it did during the Nixon administration, the days of stagflation will return with a vengeance.
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While not yet sounding an alarm, top strategists at BlackRock are starting to worry about the possibility of U.S. stagflation — high inflation combined with high unemployment and stagnant demand.
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In economic circles, however, "neoliberalism" is most identified with an elite response to the economic crises of the 1970s: stagflation, the energy crisis, the near bankruptcy of New York.
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The Bank of England's clearly signposted next round of monetary easing is looking less certain given this dynamic and growing fears of stagflation – rising inflation combined with poor economic growth.
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Waddell said if there is "never ever" anything out of the Trump agenda, there could be stagflation, which means the combination of slow economic growth, high unemployment and high inflation.
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Beyond that, in the late 1990s, and even now to some extent, we were suffering from the tyranny of the 1970s, with too many people seeing stagflation around every corner.
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In fact, it's still happening now, despite the reality that the post-2008 crisis was far worse for the world's major economies than the stagflation of the 1970s ever was.
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Spikes in oil prices "due to geopolitical tensions can be negative given risks of stagflation, plus the impact on corporate and consumer sentiment/spending," Subramanian said in a note Monday.
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Massive debt spending is often followed by a massive hangover, just as spending on social initiatives, the Vietnam War, and the oil crises of the 1970s led to harmful stagflation.
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"Cracks in the bull case are starting to emerge, with fund managers citing concerns over trade, stagflation and leverage," Michael Hartnett, chief investment strategist at BofAML, said in a statement.
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Indeed, the 6900s gave us a new word, "stagflation," referring to the simultaneity of stagnant growth and surging prices; the inflation rate hit double digits in both 2628 and 28503.
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In 1980, Carter struggled with the impact of 1970s stagflation, the combination of high unemployment and inflation, as well as an oil crisis that left Americans waiting at long gas lines.
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Triggers that will send the index lower are everything from stagflation, an "earnings recession" for S&P 500 stocks, change in investor sentiment, China's slowdown and consistent Fed hikes, Kolanovic says.
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After the stagflation of the '70s, the government eased regulation on the industry, and S&L associations responded by engaging in increasingly risky behavior without enough capital to offset the risk.
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The big picture: This view is grounded in the thought that the Fed's current approach — shaped by the era of "stagflation" in the late 1970s and early '80s — may be outdated.
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It all came crashing down in the early 225s as the fixed-currency system collapsed, and an oil embargo imposed by Arab producers ushered in stagflation (ie, high unemployment combined with inflation).
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HSBC on surprise Trump election victory: 'Look out below' HSBC said in a note to clients that Trump's policies and lack thereof would hurt the economy, earnings and possibly spark stagflation. 2.
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AND WILL EXPECT IT TO COME IN IN THE EVENT THAT THERE'S A DOWNTURN FROM HERE, AND THERE MAY BE. I MEAN, IT WOULD BE CONSISTENT WITH EITHER STAGFLATION OR JUST STAGNATION.
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That could raise the specter of stagflation in the U.K. May might also be well advised to recall that Thatcher's intransigence on the poll tax issue proved to be her political undoing.
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He's a lawyer and former private equity manager, who became the first Fed chair without an economics pedigree since the disastrous William Miller whose tenure from 1978—1979 led to U.S. stagflation.
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Given the weak retail sales report alongside this the markets are probably going to talk about stagflation, where you are getting stronger inflation but not really getting a stronger consumer, which is damaging.
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He is a professor emeritus at the Anderson School of Management at the University of New Mexico, and his book about stagflation, "Marketing in a Slow-growth Economy," was published by Praeger Publishing.
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He is a professor emeritus at the Anderson School of Management at the University of New Mexico and his book about stagflation, "Marketing in a Slow-growth Economy," was published by Praeger Publishing.
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It's an even worse version of the stagflation Americans experienced in the 1970s: The Brazilian real (its currency) is rapidly losing value at the same time as the country is experiencing a recession.
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During the 1970s almost the whole macroeconomics profession was persuaded by the experience of stagflation that Milton Friedman (and Edmund Phelps) were right: there is no long run tradeoff between inflation and unemployment.
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He is a professor emeritus at the Anderson School of Management at the University of New Mexico, and his book about stagflation, "Marketing in a Slow-growth Economy," was published by Praeger Publishing.
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Yang Tingwu, vice general manager of hedge fund house Tongheng Investment, said his worst nightmare was that of a spreading Middle East crisis push oil prices higher, threatening to push China into stagflation.
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Yang Tingwu, vice general manager of hedge fund house Tongheng Investment, said his worst nightmare was that of a spreading Middle East crisis push oil prices higher, threatening to push China into stagflation.
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But Trump's proposed path could also be the way toward higher interest rates for savers and retirement investors, toward potential job growth in rural and corporate America, and possibly inflation without succumbing to stagflation.
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But Janet Yellen isn't going to have to dust off her eight track of KC and the Sunshine Band to evoke the 2000's; she is creating 2282's style stagflation with her monetary policies.
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But he noted that the Great Depression, stagflation of the 1970s and most recently the Great Recession had all taken place since the Fed's creation more than a century ago, apparently confusing correlation with causation.
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This is what happened in the presidential election of 1972, and the result was nearly a decade of economic stagflation, marked by double-digit inflation and high unemployment rates not seen since the Great Depression.
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Unemployment was low but steadily rising; even a long recession from 1973 to 1975 hadn't slowed inflation, giving rise to the term "stagflation" to refer to the unusual combination of price increases and economic sluggishness.
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The Federal Reserve is largely credited for ushering in the age of the Great Moderation, a Goldilocks scenario of low unemployment, low inflation and sustained economic growth that followed the tumultuous stagflation of the 1970s.
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There's an argument to be made that this approach may have made sense in the 1980s, after the stagflation of the '70s, but Stout shows that it was inherently flawed and achieving the opposite result.
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Friedman thought that in the long run, there's no trade-off between unemployment and inflation, which is why "stagflation" in which both are high, as the US would later experience in the 1970s, is possible.
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"In the long run, the labor shortages could cause cost-push inflation or stagflation, in which the cost of doing business keeps on rising, while the economy stagnates," said Masaki Kuwahara, senior economist at Nomura Securities.
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Stagflation, or conditions in which costs are rising but growth is not, last was seen in the 1970s, before then-Fed Chair Paul Volcker had to push the economy into recession to slay the inflation dragon.
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Their arguments gained popular appeal after the stagflation of the 1970s provided the opening for President Ronald Reagan and others to put these ideas into practice by loosening financial regulation, attacking union power, and easing antitrust enforcement.
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The fall of Saigon, Watergate, stagflation, gas lines — a miserable era was already reaching its orgiastic summa when, in early November, a group of Iranian college students occupied the American embassy in Tehran, taking 21980 Americans hostage.
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The official orthodoxy of the right — embodied most notably by the Wall Street Journal editorial page — saw a long period of solid post-stagflation growth that only lacked for more supply-side tax cuts to be truly turbocharged.
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White House pressure on the Fed to keep interest rates low in the 1960s in order to boost growth contributed to a subsequent period of so-called stagflation, or low growth and high inflation, in the 1970s, Williams noted.
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Nigeria is currently experiencing a sustained period of "stagflation", characterised by slow economic growth and high inflation and while the poll expects price pressures will ease over the next two years the inflation rate will remain in double digits.
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Nigeria is currently experiencing a sustained period of "stagflation", characterized by slow economic growth and high inflation and while the poll expects price pressures will ease over the next two years the inflation rate will remain in double digits.
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Powell took over as chairman in an era of low inflation, low unemployment and strong economic growth, in contrast to Volcker who was appointed to fight stagflation and Bernanke who began his chairmanship at the height of the housing boom.
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This condition plagued the United States during the majority of the 22015's and early 2200's and was "affectionately" referred to as stagflation: rising inflation that is coupled with a high unemployment rate and low to negative economic growth.
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RIGHT NOW, WE'RE IN A STAGE, IF NOTHING IS CHANGED, WE'RE ABOUT TO GO FROM STAGNATION TO STAGFLATION, WITH A SIGNIFICANT RISE IN INFLATION, AND A WHOLLY SIGNIFICANT IMBALANCE IN THE ECONOMY, WHICH IS VERY DIFFICULT TO ANTICIPATE AT THIS STAGE.
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"And when the dollar crashes, it's going to take the bond market with it, and we're going to have stagflation, we're going to have a deep recession with rising interest rates, and this whole thing is going to come imploding down."
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Jimmy Carter didn't cause the stagflation that put Ronald Reagan in the White House; George H.W. Bush didn't cause the economic weakness that elected Bill Clinton; even George W. Bush bears at most tangential responsibility for the 2008 financial crisis.
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Confronting economic challenges with the &aposVolcker Shock&aposThe US was in the midst of a nearly decade-long battle with economic "stagflation" — a period when both inflation and unemployment were persistently high — when President Jimmy Carter nominated Volcker as Fed chair.
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"We're in a stage where if nothing is changed, we're about to go from stagnation to stagflation, with a significant rise in inflation and a wholly significant imbalance in the economy, which is very difficult to anticipate at this stage," he said.
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Therefore, the most salient question for investors to answer is: Will the economy suffer through a 70's-style stagflation before the markets and economy fall into a steep and unprecedented contraction, or will it simply implode into the inevitable deflationary collapse straight away.
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Bass, who made his name betting against subprime mortgages ahead of the 2008 financial crisis, warned that the combination will create an environment of "stagflation," a term that came into widespread use during the 1970s when both consumer prices and unemployment were on the rise.
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My core argument is premised on the fact that they experienced economic challenges themselves, including the stagflation that greeted them as they entered the job market in the 1970s, the new dawning of globalisation and the outsourcing revolution of that era, and so on.
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A model by economists at Pictet Asset Management in London reckons a 10 percent tariff on U.S. trade fully passed on to the consumer could tip the global economy into a state of stagflation and knock 2 and a half percent off corporate earnings.
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"Given the weak retail sales report alongside (the inflation data), the markets are probably going to talk about stagflation, where you are getting stronger inflation but not really getting a stronger consumer," said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.
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Grain and gasoline prices — two key components of overall inflation — have been on the rise, so the United States needs growth in infrastructure spending and employment in order to avoid stagflation, or a period of rising prices paired with weak GDP gains and high unemployment, Gunzberg said.
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The quarterly inflation report, due next week alongside the BoE's first rate decision of the year, could signal a shift with the bank focusing on a healthier outlook for economic growth rather than worrying about "stagflation", Credit Agricole's head of G10 FX Strategy Valentin Marinov said.
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If he does, he will inherit a country mired in stagflation with an unsustainable debt burden that Fernández will begin to renegotiate next week, all while adopting a foreign policy that will end Argentina's status as one of the United States' closest allies in Latin America.
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A letter Mark Carney sent to MPs in late March sets out that the result the governor fears is stagflation — higher inflation from the drop in sterling pushing up import prices, without the usual boost to demand because of a confidence shock to the UK economy.
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However, President Donald Trump's decision to pull the U.S. out of the Iran nuclear deal "constitutes a major geopolitical shift" which could trigger a move in the direction of "stagflation," a global strategy team at Citi, led by Mark Schofield, said in a research note published Monday.
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In 1984, amid the nation's recovery from stagflation and recession, forecasts based on the state of the nation's economy suggested Ronald Reagan would win handily; likewise, the various models using this approach proposed a big loss for the incumbent party in 2008 during the financial crisis.
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IN OTHER WORDS, INFLATION IS GOING TO ENTER INTO THE STAGNATION, AND AS I'VE BEEN ARGUING FOR A LONG TIME, WE ARE ALREADY MOVING INTO STAGFLATION, WHICH ACTUALLY FEELS BETTER THAN STAGNATION BECAUSE, FOR EXAMPLE, PROFIT MARGINS ARE MOVING UP. THE DATA FOR JANUARY ARE NOT TOO BAD.
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But the rich moved quickly to throw all that out the window as soon as they could get away with it — starting in the 1970s, when stagflation and the oil crisis presented pretexts for pro-capitalist policy that set the stage for a weakened welfare state under President Ronald Reagan.
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"If Trump does follow through on the full extent of his proposals, our economics team believes there could be a short-term boost to GDP growth from tax cuts and increased defense spending, but stagflation could quickly set in if import prices rise and the immigrant labor force contracts, " the report said.
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But the simplest explanation is that Nixon didn't survive because his second term featured a series of economic shocks — summarized on Twitter by the political theorist Jacob Levy as "an oil crisis, a stock market crash, stagflation and recession" — while Clinton's second term was the most recent peak of American power, pride and optimism.
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Big economic shocks of the 1970s, like the befuddling "stagflation," provided reasons to abandon previous, more redistributive economic regimes, but a reader still burns to know: How could economists be so wrong, so often, and so clearly at the expense of the working people in the United States, yet still ultimately triumph so totally?
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But under steady questioning from House and Senate members, he laid out a jarring view of what might be on the horizon "in principle" if trade threats turn into globally higher tariffs: lower wages, less investment, lower productivity, and the sort of stagflation that would leave the Fed struggling against both rising prices and ebbing growth.
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Professor Weitzman addressed another broad economic challenge in his book "The Share Economy: Conquering Stagflation" (1984), in which he proposed that the crippling nexus between unemployment and inflation could be severed by means of profit-sharing; in other words, by linking a substantial portion of workers' income to a company's revenue instead of paying a fixed wage.
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This must make one think that if a simple trade agreement with Canada could be blocked by Wallonia, which is merely a part of small Belgium, would it not seem very likely that at least one of the other 27 EU member countries will succeed in blocking the very much more complex and consequential exit arrangement that is likely to be negotiated for the U.K. The U.K.'s own past experience with sharp falls in sterling would inform us that Britain could now very well be in for a prolonged period of stagflation.
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