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By Ken Little, About.com Guide to Stocks since 2004

Stagflation is Dangerous for Stocks

Wednesday December 19, 2007
Stock investors always worry about inflation and they also worry about recession. However, their worse fear is a combination of the two economic conditions known as stagflation.

Comments

December 19, 2007 at 8:28 am
(1) Alfred Chew says:

I think stagflation will be inevitable in any economy. It is a cycle which we will need to go through.

In every economy, we have the inflation, then the growth, the overspending and uncontrolled finance policy, the deflation, the recession and finally the stagnation. Stagnation will self correct after a while but it depends on the severity.

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