Why Analysts Are Suddenly Talking About Stagflation Again For most of the past decade, stagflation wasn’t part of the conversation. Economic growth was steady, inflation remained relatively contained, and unemployment hovered near historic lows. The conditions that defined the economic turmoil of the 1970s seemed like relics of another era. But recently, that confidence has started to crack. A growing number of investment banks, strategists, and economists are quietly raising concerns that the economy could be drifting toward conditions that resemble stagflation — an environment where inflation rises while economic growth slows and unemployment climbs. That combination creates one of the most difficult economic scenarios policymakers can face. And the reason analysts are talking about it again comes down to…
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