While we await today’s FOMC non-action, let’s edumacate ourselves as to a new definition, via Wordspy, we get today’s word of the day:
An economic state characterised by slow growth and high inflation. [Cf. stagflation.]
Stagflation light. Slowflation. A
variety of terms are floating around to describe the current state of
the economy: growth that’s too slow and inflation that’s too high for
Federal Reserve comfort.
The nicknames refer to the stagflation of the late 1970s and
early ’80s, when the country endured not only disco, but double-digit
price increases, slow growth and high unemployment.
—Sue Kirchhoff, "Economy searches for a new word S-word," USA Today, May 2, 2007
The risk that the U.S. real-estate market’s woes might affect stocks
and bonds is front and center for Raj Sharma, a private wealth adviser
with Merrill Lynch in Boston. Merrill’s North American economist, David
Rosenberg, recently warned against a combination of slower growth and
faster inflation ("slowflation") that the real-estate slowdown would exasperate.
—Suzanne McGee, "Best in Class," Barron’s, April 23, 2007
Earliest Citation: The only question is whether the monetary tightening is enough to do
so. Consistently strong monetary expansion suggests it is not. Still
higher interest rates are probably needed, leading to a politically
unpopular, perhaps budget-wrecking, economic slowdown. It may turn out
to be "slowflation" rather than stagflation, with growth modest, but positive.
—"Monetary blues," Financial Times, June 18, 1998