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Stagflation...The latest 'flation' in town
Is deflation giving way to Stagflation? Stagflation is a difficult economic situation when inflation and economic stagnation occur simultaneously and macroeconomic policy fails to address both of these problems at the same time. QE1 was a big experiment by the US Fed and it hasn’t worked. Though inflation expectations are low and unemployment is high, we are not very far from a situation of real
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