Winds Of Stagflation? We Are Still Far From A Scenario Like That Of The 1970s
José Ramón Díaz (Caixabank Research) | The recent deterioration of the growth/inflation mix is the result of the dynamics of an asymmetric recovery and will remain subject to a high level of uncertainty in the coming quarters. Nevertheless, we are still far from a scenario of stagflation like that of the 1970s, which is the major source of concern for a number of economists. This is because, firstly, the global economy is much more flexible than it was 50 years ago. Also, economic policy, especially in the monetary sphere, now has the tools (and the independence) to respond to such a risk.









