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Inflation, Deflation, Stagflation?

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Kay Wise

Principal Consultant

Tag: economy
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Classical economics tells us that inflation comes from too much money chasing too few goods while deflation will arise from too many workers chasing too few jobs. Could we have both?  Would it look like the stagflation of the 1970s...or something else?


Some few experts now argue that the world is headed for deflation, rather than inflation as many seem to believe.  When the tipping point comes, which way will the curve break?


Governments around the world have taken on enormous amounts of debt.  The financial system is plagued with financial institutions too big to fail.  Iceland may not have been too big to fail, but what of other heavily indebted governments?  Are we all at risk?

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