Industry argues stagflation fears based on misnomer

Spectre of stagflation seems unlikely

Lauren Mason
clock • 3 min read
The ‘stag’ element of stagflation is a misnomer in the current environment, experts say
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The ‘stag’ element of stagflation is a misnomer in the current environment, experts say

The “nightmare scenario” of stagflation rearing its head is less likely than many investors think, according to investment professionals, who say the current backdrop is not comparable to the last prolonged period of stagflation during the 1970s and early 1980s.

However, they warn that expectations for stagflation could lead to a "significant reversal" across nominal bond and equity markets. Stagflation, when economic growth slows and unemployment increases...

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