Stagflation boogeyman?

1

Given the current coronavirus situation, one might boldly ask what else would need to happen for the global economy to dive into stagflation?

When adding money doesn’t lead to a rise in inflation, what if the structure is already so wrong that simultaneous deflation and an economic slowdown are a likely scenario, which will soon turn into a burst of pent-up inflation and a simultaneous economic slowdown?

Shhh, you’re not supposed to say that we are actually already in stagflation with pent-up inflation, but just getting rid of it? Everything will be fine if we just believe it.

As Western countries, and soon the USA, recover from Corona, the question will probably fade into a theoretical one, but one can always ask, even if it takes 10 Mariannes to answer one Juurikki’s questions.

Mihin kannattaa sijoittaa deflaatiossa/inflaatiossa/stagflaatiossa?
2

Or even REFLATION? Now I really need to go to sleep and recall my perspective on all this in the morning. Sleep tells more than a thousand message threads.

3

Even the blogger had the terminology mixed up. The link still says “stagflation.”

Marianne has created a macroeconomics thread where there’s discussion about the same topic:

Let’s try to avoid duplicate threads.