The origins of stagflation and the possibility of its recurrence continue to be an important concern among policymakers … and in the popular press. It is common to associate the origins of the Great Stagflation of the 1970s with the two major … of the causal mechanism generating stagflation as is often thought. We provide a model that can explain the bulk of …

none of the more recent oil price shocks has been associated with stagflation in the US economy, a major reason for the … stagflation of the 1970s. We show that this is not the case …

generated the stagflation of the 1970s as is often thought. There is neither a theoretical presumption that oil supply shocks … contractions can generate stagflation of realistic magnitude even in the absence of supply shocks. Furthermore, monetary … coincidence of major oil price increases and worsening stagflation …