We see dreaded stagflation come back to haunt us
WORST OF BOTH WORLDS
Australia has enjoyed several decades of low inflation, but this has not always been the norm. The resurgence of inflation over the past few months has raised the possibility of wider economic problems if it is not brought under control.
While higher inflation is usually linked with a booming economy, there are instances where we see the worst of both possible worlds: high inflation and slow or falling economic growth.
This is stagflation, and unfortunately it tends to
