Episode 20: Are We Heading Back to 1970s-Style Stagflation?
Aug 19, 2021
Ah… leisure suits, gas lines, Watergate, browns and burnt oranges. Disco and discontent. And don’t forget the economic malaise of stagflation. The 1970s. Some believe, nearly fifty years later, that we are returning to high inflation and low growth. There’s no jive-talkin’ here. Listen here for some insights as we go back in time. Can you dig it?
Here are just a handful of the things that we'll discuss:
- On August 15, 1971 President Nixon gave a speech that was a catalyst for stagflation.
- Parallels: The oil embargo of 1973 was a shock to the system that, combined with bad monetary policy, brought about economic misery. Is the pandemic the same kind of shock in 2021, along with questionable modern-day monetary policy, that will beget similar conditions?
- Watch the bond market on where it thinks inflation is heading.