Stagflation and the Direction of the Economy

Although stagflation is certain to occur, the determining factors and dynamics are different from those in the 1970s, so the mitigation cannot be the same.

History always repeats itself, but it is not always the same. The recent economic landscape has been marked by a decline in economic growth accompanied by high inflation, known as stagflation. We flashback to the 1970s, when global inflation reached its peak of 14.4 percent. It was called the hyperinflation era. The main cause of the high inflation in that era was the increase in world oil prices.

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