'It’s worth remembering that the last two years of the Biden administration were marked by “Immaculate disinflation,” with inflation falling while the economy maintained solid growth.

But now inflation is coming, while stagnation seems to have arrived. So stagflation it is.'

Could also be called "squalid re-inflation"?

https://paulkrugman.substack.com/p/its-beginning-to-smell-a-lot-like

by Ogobe1

5 comments

  1. More like Trumpflation. Trump induced inflation, someone in 20yrs will be doing their PhD dissertation on this topic.

  2. Krugman states:

    >”Contrary to what many people believe, tariffs don’t necessarily lead to high unemployment. America had a high average tariff even before Smoot-Hawley — 15.8 percent in 1929 — but the unemployment rate in 1929 was under 3 percent.”

    I wonder whether the shock of lower consumption due to suddenly higher consumption taxes would be what might tip the economy into a real wage stagnation/recession, with an initial transient inflation.

    Krugman refers to the [50.1% July Services Purchasing Managers Index reading](https://www.ismworld.org/globalassets/pub/research-and-surveys/rob/nmi/slowrob202507svcs.pdf), concluding “This is getting down to what Goldman Sachs calls “stall speed” — “a pace below which the labor market weakens in a self-reinforcing fashion.””

  4. No problem at the end of july since the beginning of the year;;growth ofr 2:3% for 3% -expected,inflation:2.9% for 2.9%, net margin 7% .. 10% is a good margin..;;;Wait and see with Tariffs but nothing to declare

  5. When the tariff’s in my job is gonna have so much work.It’s gonna be f****** insane.

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