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Stagflation.
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woodbine
Community member Posts: 11,658 Disability Gamechanger
No not Stags getting bigger stagflation is when incomes and inflation are both rising but growth isn't, we last endured it in the mid 1970's with a brief episode in 2008.
Sadly it looks like it might be coming back and it might be back for a year or more, the question is what can the govt. do to help us through it ? A windfall tax on some profits might help, increasing interest rates does help but it's a blunt instrument as it affects mortgage cost, which in turn increases inflation.
If I had to make one comment it seems to me as though our current govt. is clueless about what to do next.
Sadly it looks like it might be coming back and it might be back for a year or more, the question is what can the govt. do to help us through it ? A windfall tax on some profits might help, increasing interest rates does help but it's a blunt instrument as it affects mortgage cost, which in turn increases inflation.
If I had to make one comment it seems to me as though our current govt. is clueless about what to do next.
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