Guy Stephens: Stagflation shots

There are some reports around at the moment concerning the emergence of future stagflation in developed economies and what this could mean for equity markets. It is worthy of consideration because there are three economic fundamentals to stagflation and two of them are very much in evidence while, arguably, all three are present in certain economies and industrial sectors. The technical definition of ‘stagflation' is when a country experiences slow economic growth with relatively high unemployment - so called economic stagnation - accompanied by rising prices or inflation. The reason why...