Quotes About Stagflation

The stagflation of the 1970s blessed us with damaging wage and price controls and the utterly counterintuitive supply-side notion - famously drawn on a napkin - that cutting taxes would lead to higher tax revenues.

The unemployment rate rose between 1968 and 1970 from 3.6 to 4.9 percent—a jump of more than 33 percent. The consumer price index increased by roughly 11 percent in the same period. Analysts of the economy coined a new and memorable term for what seemed to be happening: "stagflation.

Americans already believed Carter was wasting too much time on the Middle East when there were more pressing problems at home. The country was experiencing double-digit inflation coupled with high unemployment and anemic growth—a confounding phenomenon tagged "stagflation." As for the president's job performance, the two dreaded lines on the graph finally crossed in the spring of 1978, with more Americans disapproving

There's nothing in Keynesian economics that would allow you to solve stagflation. But there's nothing in neoclassical economics that would allow you to solve stagflation, either.

In theory, bad economic times should pull prices down, but the glut of global petrodollars kept pushing inflation up while high unemployment held wages down, giving birth to Stagflation. Lindsay raised taxes to make up for sliding revenues, but it wasn't enough, and here's where the nosedive began. State funds and property taxes come to the City twice a year, so to maintain cash flow it has to regularly borrow hundreds of millions of dollars.

Recall the 1970s, a decade that featured bubbles, busts, an end to the global gold exchange standard, devaluation of the dollar, mounting debt, risky financial innovation, monetary and fiscal experimentation, and oil supply shocks driven by geopolitical shocks. It all culminated in double-digit inflation, stubborn unemployment, and persistent recession. That is the corrosive condition known as stagflation, or stagnation with inflation.