Sun Apr 27th, 2008 at 04:48:55 AM EST
I'll start out by admitting my ignorance: I never "got" stagflation. I don't understand what it is, and more importantly, I don't understand why economists are so scared of it. The best description I've read so far is that stagflation is "Economics' version of the Blue Screen of Death." The only solution known to man (or at least the man I've talked to) is to "reboot" the economy by deliberately plunging it into recession and then working from that using the ordinary economic tools.
So I'll attempt to tap into the collective wisdom of European Tribune to answer the following questions:
- What is stagflation?
- Why is it so scary?
- What causes it?
- What to do about it?
Diary rescue by Migeru
[editor's note, by Migeru]
Socratic Economics is an occasional series of questions posed in a Socratic effort to understand economics. Previous entries:
Other diaries which should have been added to the series...