(Global Stagflation)(Inflation out of control) - 1970s-style stagflation .. repeating itself

'..Another critical characteristic of the earlier inflation era was frequent temporary reversals in inflation, only to be followed by new peaks..'

- (Global Stagflation)(Inflation out of control) - Inflationary Psychology Has Set In. Dislodging It Won’t Be Easy.


'..If the Fed and global central bankers relax with inflation in the five to six percent range, it will likely spike back toward double-digits during the next inflationary shock. This is no time for Inflation Complacency.'

- Doug Noland, '..inflationary forces have been unleashed..', January 20, 2023


'Inflation remains above central banks' targets in every G-7 country -- the U.S., Canada, France, Germany, Italy, Japan, and the United Kingdom. How long it will remain high is one of the most important questions facing financial markets, and a destabilization of expectations would make it even harder for policy makers to restore price stability.'

'..The spike in energy prices is adding to the growing list of similarities to the 1970s era -- which also includes consistently above-target inflation across major economies and repeated optimism about how quickly it would fall..

..

Inflation remains above central banks' targets in every G-7 country -- the U.S., Canada, France, Germany, Italy, Japan, and the United Kingdom. How long it will remain high is one of the most important questions facing financial markets, and a destabilization of expectations would make it even harder for policy makers to restore price stability.

"So given inflation is still above its pre-pandemic levels, it is important not to get complacent about its path," Allen and Ainsworth-Grace wrote in a note released on Monday. "After all, if there is another shock and inflation remains above target into a third or even a fourth year, it is increasingly difficult to imagine that long-term expectations will repeatedly stay lower than actual inflation.

"History indicates that the last mile of inflation is often the hardest. One of the key lessons of the 1970s was that inflation failed to return to previous levels after the first oil shock of 1973 and U.S. recession of 1973-1975, and went even higher following a second oil shock in 1979. Now that inflation has been above target for the last two years, "a fresh inflationary spike could well lead expectations to become unanchored," according to the Deutsche Bank note.'

- 1970s-style stagflation .. repeating itself, October 10, 2023



Context '..inflation .. deflation..' - '..the role time plays..' - '..social interaction..'

(Global Stagflation) - '..inflation tends toward a cycle of unpredictability and destabilizing volatility that can extend for years and even decades.'

Perils of Unsound Money - 'Once inflation dynamics become firmly embedded, a return to stability becomes extremely difficult..'

(Global Stagflation) - '..Powell’s statement is totally inconsistent with Paul Volcker’s final say on monetary economics..'


(Banking Reform) - 'Disaster is a strong but appropriate word that applies perfectly to the state of U.S. monetary policy..' - Dr. Hunt

The war against inflation is a long way away from being won - Euro-Area Core Inflation Quickened..

(Global Stagflation) - 'US Inflation Pressures Persist..' - 'The average price of food in the United States increased 8.5%..'


(Global Stagflation)(Inflationary damage) - '..acc to Taylor Rule .. ECB rates should be 7.2 ppts higher for the entire Eurozone..'

(Global Stagflation) - '..UK Is ‘Stagflationary Sick Man of Europe’ - '..inflation remains persistent.' - 'Bundesbank lessons .. the 1970s .. inflation.'

'Once again, the Federal Reserve has underestimated inflation..' (Summers) - '..we risk inflation getting entrenched.' (IMF)


(Global Stagflation)(Jumbo rate hikes needed, between 1 and 2 percentage point range) - '..new labor deal with big raises.'

(Global Stagflation) - '..inflationary biases percolating throughout the economy (and globally)..'

(Global Stagflation) - ..A sticky inflation situation



(Sticky inflation)(Severe impact of inflation) - '..strong .. inflation that is not coming down..'

(Global Stagflation)(QE Was a Colossal Policy Mistake) - '..wage earners have to get a 14.8 per cent wage increase just to hold even with this kind of inflation..'