In this series of podcasts, William De Vijlder, Group Chief Economist of BNP Paribas, discusses the issue of stagflation, a term that has been increasingly used in the media in recent months. Stagflation, a multi-year phenomenon combining rising unemployment and high inflation, brings us back to the dark days of the 1970s and 1980s, when inflation levels were unprecedented and mass unemployment began. In the current economic environment, which bears the brunt of the shocks of the COVID-19 pandemic and the war in Ukraine, inflation is exceptionally high. Should we fear the return of stagflation? What is the central banks' room for manoeuvre to address the issue of a high and persistent inflation without damaging growth? And what can fiscal policy do to cushion economic shocks?
