Long before it was a common topic of discussion, I wrote in October about the likelihood of stagflation in 2022 - 2023. Last witnessed in the United States during the 1970s, it was caused by a surge in the price of an essential input that had no good substitutes at that time — crude oil. However, as I discussed then, the surge in the price of oil was itself in response to the sharp increase in US money supply at the beginning of that decade, forcing commodity exporters to react to a loss of purchasing power.
Revisiting Stagflation: Again
Revisiting Stagflation: Again
Revisiting Stagflation: Again
Long before it was a common topic of discussion, I wrote in October about the likelihood of stagflation in 2022 - 2023. Last witnessed in the United States during the 1970s, it was caused by a surge in the price of an essential input that had no good substitutes at that time — crude oil. However, as I discussed then, the surge in the price of oil was itself in response to the sharp increase in US money supply at the beginning of that decade, forcing commodity exporters to react to a loss of purchasing power.