Archive for March 2008
By Greg Ip
3 March 2008
The Wall Street Journal
(Copyright (c) 2008, Dow Jones & Company, Inc.)
Two fears hang over the U.S. economy: wrenching recession and spiraling inflation.
Yet history suggests the two almost never happen at the same time. And that explains why the U.S. Federal Reserve, for now, has chosen to focus on the first threat rather than the second.
Fed officials believe that those who say it is courting a return of 1970s-style “stagflation” — stagnant growth and inflation — misinterpret the lessons of that decade. Read the rest of this entry »