▲ 1 r/AskEconomics
If stagflation took hold but GDP continued to grow (in small amounts), how would monetary policy respond?
I'm envisioning a scenario in which the ultra-wealthy maintain GDP growth by passing billions amongst themselves, while the public deals with a shrinking job market and sharply rising costs of living.
This wouldn't fit the "technical" definition of a recession, so what term would we use for an economy like this? Has something like this ever happened before?
u/Free_For__Me — 2 days ago