See the long column to see why Dr Doom predicts economic disaster: We’re Heading for a Stagflationary Crisis Unlike Anything | Time
The record of expert predictions has been awful the past two- and one-half years. Perhaps best to look at expert predictions as a possibility, not a likely outcome, though.
Interesting to see this in historical context – our current inflationary environment has not been like this in 40+ years. And each time inflation ramped up (except 2000/2001), we had a recession. That’s the primary tool for reducing demand.
The higher the inflation rate, the longer the duration of the recession, it seems, from this chart.
I suspect today’s inflation was created by public health driven policies that led to massive government borrowing/printing money – and which simultaneously led to increased demand.
In the 1970s-1980s, inflation was often blamed on OPEC or whatever – but I believe the major factor was the very large “Baby Boom” cohort entering job and housing markets at the same time – and led to significant demand pressures, driving up prices.
