Guest Poet: Stagflation Redeux?
Another poetic work of art from TMV’s favorite poet, Michael Silverstein, aka Wall Street Poet:
Economists used to think you couldn’t have inflation when an economy was slowing. Then came the 1973 Arab Oil Embargo. Energy costs kicked up other prices causing inflation, and the same energy prices brought about an economic slowdown. Stagflation. Could it happen again…
When growth is fast and prices spike
The fed gives in’trest rate a hike.
When economic numbers slump
The fed moves quick to prime the pump.
But now Bernanke’s brainy crew
Can only wonder what to do.
With oil pushing up inflation
And threatening to spawn stagnation
There’s fears an old abomination
Might reappear: the dread stagflation.
©2006 Michael Silverstein