Question

Select an article from The Wall Street Journal or some other business or economic periodical that relates to the economic topic(s) covered in Workshop Four. 2.Prepare a one to two page analysis of your article . Be sure to include the topic, the author’s main point or argument, and your analysis of the author’s conclusions.

Answer 1

Article : Fears of stagflation return as price rise increases

The article summarises an undesirable condition wherein the inflation rises consistently and recession nears due to variety of factors amidst credit crunch which all leads to phenomenon called stagflation.

The US Fed has thus maintained neutral stances in 2018, to obswrve the swing in the economy and how economy behaves. All in all CPI inflation has grown by 4% quarter on quarter and added effects of rising housing and oil proces have led to destabilising in US and inflationary regime. Also the yield curve has inverted. Moreover the unemployment has risen and thus also contributed to slowdown posing bigger problems to US Fed.

All in all US Fed has kept interest rates low to observe economic conditions and elimination of recessionary curve becomes more important.

Authors view in above article are very calculated and analytical however misses out on key parameters like government spending and automatic stabilisers which akso have domino effects on increasing the real GDP and hence must have been accounted to gather more concrete holistic view of economic circumstances.