At first glance, the question may seem misplaced. We have recently known that US GDP grew at an annual rate of 3.9% in the third quarter of the year, whereas inflation rate was 2.8% in September. No stagnation and not too much inflation there. However, plenty of evidence is suggesting that the fourth quarter might look quite different. Growth could be drastically reduced or even be negative, while inflation rates might jump up to 5%. That would very much look like stagflation, one of the most feared events for central banks, since there is no obvious policy response to it.
Archivo de la Categoría ‘Economía de EEUU’
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Is the US economy facing stagflation? (How should the Fed react?)
Escrito el 12 noviembre 2007 por Antonio Zamora en Economía de EEUU, Política Monetaria, Previsiones económicas
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