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Daily Archives: July 4th, 2008

It’s contraction boy, not stagflation!

Let’s first define what stagflation means
Stagflation is the state of an economy where inflation combined with stagnation locks a society into slow-to-negative economic growth and rising unemployment, invariably including recession.
Policies which promote growth in the money supply to allow consumers to afford higher priced oil contribute as a cause for runaway inflation, even if implemented [...]

Signs of a recession?

Happy Birthday, America!
The typical economic cycle consists of two main phases: Boom and Recession. The phase leading to a boom is called expansion and that leading to a recession is called contraction. Another way of looking at this  is,  considering expansion the transition from recession-boom and contraction the transition from boom-recession.
 

 
10 signs that an economy’s in recession: