Stagflation is the toxic brew of “stagnation,” an economy that is barely growing in real terms, and “inflation,” with consumer prices rising relentlessly nonetheless.
It’s sort of the worst of all worlds, especially for savers and investors. The phrase was coined in the 1970s, when it seemed to be almost a permanent state of affairs. The people who suffered most were savers, especially retirees, who kept their money in supposedly safe things like certificates of deposit and Treasury bonds. Prices rose by more than the rate…
