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Let's take a theoretical approach. From DEFLATION to STAGFLATION. Or from a demand side shock to a supply side shock. The efforts of Governments may exacerbate the problem - and will bring about stagflation.... follow! @dlacalle_IA do you agree?
Corona makes Governments shut down countries. Deflationary! Businesses are affected and start to reduce output and close business. Supply reduced! Governments massively stimulates DEMAND side, which increases demand above equilibrium. NET EFFECT = HIGHER PRICES - LOWER OUTPUT!
From DEFLATION to STAGFLATION!
Dear Harald @Halsrethink Do you agree?
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