Likelihood for stagflation?
Quote from Lars Svensen on 03/31/2020, 9:56 AMHi Cullen. Thanks for your calming voice during these scary times.
It seems to me as though this is an environment that could lead to stagflation. Global governments are about to spend tens of trillions of dollars supporting their economy, but the productive capacity of those economies is unlikely to respond correspondingly. Does this make you worry about stagflation?
Hi Cullen. Thanks for your calming voice during these scary times.
It seems to me as though this is an environment that could lead to stagflation. Global governments are about to spend tens of trillions of dollars supporting their economy, but the productive capacity of those economies is unlikely to respond correspondingly. Does this make you worry about stagflation?
Quote from Cullen Roche on 04/01/2020, 9:35 AMIt's a growing concern. The longer this thing persists the more govts will respond with fiscal stimulus. And the longer that means productive capacity is being met with pure stimulus. This is a recipe for inflation. Perhaps not 1970s style inflation, but certainly higher than what we've become accustomed to.
It's a growing concern. The longer this thing persists the more govts will respond with fiscal stimulus. And the longer that means productive capacity is being met with pure stimulus. This is a recipe for inflation. Perhaps not 1970s style inflation, but certainly higher than what we've become accustomed to.