Low energy growth tends to come with high inflation — what economists call ‘stagflation’. But what causes what? I have a look here.

Blair Fix

Download: PDF | EPUB  In my last post, I looked at the relation between economic growth and inflation. As per usual, the evidence didn’t sit well with mainstream economics. According to standard theory, there is a trade off between low inflation and high economic growth. The idea is that you can have one or the other, but not both. So if you want to keep inflation low, you have to ‘cool off’ the economy by slowing economic growth.

Messaggi di Rogue Scholar

The Cause of Stagflation