Some economists are starting to use the S word. After presiding over one of the worst recoveries in history, it looks like President Bush's big tax cuts for the rich aren't getting the job done. What a surprise. :roll: Which is worse, stagflation or inflation or recession? Link below; my emphasis.
"It's not a term economists toss about lightly, but signs of slowing growth and rising inflation in the U.S. economy have some using the "S" word: stagflation.
Combining the words stagnation and inflation, the term is used to describe periods of rising prices and a stalled economy. While the United States is far from the last severe episode of stagflation in the 1970s, when major economies were dogged by deep recessions and double-digit inflation, many economists are getting nervous.
"I think we could be headed for something like 'stagflation lite"' said Nouriel Roubini, professor of economics at New York University and principal at the consultancy Roubini Global Economics. "We're going to have a recession for sure, based on the shocks that are hitting the economy — including higher oil and commodities prices, rising rates and a slump in housing."
http://www.msnbc.msn.com/id/14153846/