'Stagflation' (English 'stagflation') is an expression considered to be designed in 1965 by the then Minister of Finance in the UK, Ian McLeod, with whom sought to define a financial situation is particularly serious and dire consequences: a combination of rising prices, rising unemployment and economic stagnation. Neither more nor less, as rightly explained that policy in the House of Commons, '... the worst of both worlds: not just inflation on the one hand and stagnation on the other, but both together. " However, it was not until ten years later, in mid to late 70's when such a phenomenon would be displayed in all its harshness as a result of soaring inflation caused mainly by rising oil prices, which in turn would lead to a fall in the production of business and creating more unemployment. And of course, the beginning of the collapse of the then prevailing Keynesian consensus.
Well, after confirmed a rise in inflation rate of 3 percent on our economy hovers precisely the specter of stagflation. A new twist that would be an obstacle to our long-awaited recovery. And how is it possible that in an economy that just grows, characterized by their low activity, in turn drive up prices, with consequent detriment to our already pockets hurt itself? In addition to the increase in raw materials have to look at the main agent market distorting the State, in this case led by the Socialist government. Not by chance, the so-called administered prices, ie those set by the Government or those in which a greater or lesser extent involved are those that have contributed to inflation: the snuff (harmful to the health of mortals but not to fatten the coffers), fuels, electricity, gas, transport ... To all this we must add the VAT hike enacted in July, which in turn has led to a reduction in consumer demand and economic activity. And it
the only priority of this government we suffer is to get revenue, but at the expense of further deteriorating our quality of life. To the point of turning a typically inflationary state, especially in times of crisis, a devastating Leviathan 'stagflation'. You should remove their dirty hands in our pockets, and the overall economy, as soon as possible.
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