I couldn’t disagree more. It’s important to remember what drove the stagflation of the 1970’s. Hint: It wasn’t oil although oil certainly didn’t help. It was an upward spiral in wages and prices that took a major recession to correct.
Do you see any upward pressure on wages? I don’t.
Do you see inreased demand for credit? I don’t.
I expect in the aftermath of the housing bubble, credit demand will decline despite anything the Fed may do.
