In 1998 Paul Krugman declared “It’s Baaack” in a silly article heralding the return of the Keynesian liquidity trap, a chimera that even Keynes himself never believed in. But recently something very real and truly dreadful has climbed out of the witch’s brew of fiscal and monetary stimulus policies concocted by Ben Bernanke and other mainstream economists and policymakers who have drunk the same Kool-Aid as Krugman. It’s name is “Stagflation,” and it describes a situation in which a prolonged slump in the economy is accompanied by consumer price inflation. The term was coined to The U.S. economy was wracked by a high unemployment, high and high inflation throughout the 1970s. Government data releaed yesterday seem to indicate that the same. Now, it seems, the same combination of may be repeating itself in the second decade of the of the 21st century. thus while the unemployment rate continues to langsuih above Thuswith the unemployment rate langusihing in excess of Government data releaed yeaterday
Yes, It’s Baaack--But It’s Not What You Think, Paul
