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Strategies & Market Trends : Inflation, deflation or stagflation – or something else?

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From: petal9/18/2020 3:33:41 PM
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'Inverted stagflation'

I'll begin this thread by laying out very briefly an idea I've been toying with in the back of my head for some time: the concept of some kind of new, inverted sort of stagflation.

If stagflation is inflation in a recession-environment, it seems what we have had during the last couple of years is deflation or stagnation in a tentative boom environment.

Granted, I live in Sweden, and we Europeans haven't had quite the growth than you guys in the US have had the last years. Still, my feeling is that we have a definitive boom, even with covid – actually, now it feels like we have entered a weird, morbid kind of bubble phase... Prices remain stable, but equity and RE prices are soaring...

I can't really make my mind up decisively on what we have right now, but my main feeling is that we have the same sort of deflation as during the "roaring 20's", only held up slightly by artificially low rates. If we try to subtract all of the quantitative easing, inflation would surely be markedly lower, and we would have deflation. Don't you think?
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