Recent Views
Until recently no macroeconomic policy had been able to predict the occurrence of stagflation.
After the fact, and several years of research, a convincing explanation was provided based on the effects of adverse supply shocks on both prices and output. According to Blanchard (2009), these adverse events were one of two components of stagflation; the other was "ideas", which Robert Lucas (famous for the Lucas Supply Curve), Thomas Sargent, and Robert Barro were cited as expressing as "wildly incorrect" and "fundamentally flawed" predictions which, they said, left stagflation to be explained by "contemporary students of the business cycle". In this discussion, Blanchard hypothesizes that the recent oil price increases could trigger another period of stagflation, although this has not yet happened (pg. 152).
Read more about this topic: Stagflation
Famous quotes containing the word views:
“It is even more grim and wild than you had anticipated, a damp and intricate wilderness, in the spring everywhere wet and miry. The aspect of the country, indeed, is universally stern and savage, excepting the distant views of the forest from hills, and the lake prospects, which are mild and civilizing in a degree.”
—Henry David Thoreau (1817–1862)
“Meek young men grow up in libraries, believing it their duty to accept the views which Cicero, which Locke, which Bacon, have given, forgetful that Cicero, Locke, and Bacon were only young men in libraries, when they wrote these books. Hence, instead of Man Thinking, we have the book-worm.”
—Ralph Waldo Emerson (1803–1882)