Wednesday, January 7, 2009

Stagflation goes Asia

Stagflation
The Movement of American business has been interesting and prople around the globe are watching. Since 2550 the apprehensive has increaseing people think it will over in a year but no.


Stagflation has mention and dispute and the crisis has spread around the globe in middle of 2008.
Stagflation is combine 2 of two words is stagnation and inflation (stagflation = stagnation + inflation), We satrt to see the Stagflation in USA since high price of agriculture goods, Oil, US Dollar is weaken and Bankruptcy of Lehman Brothers.



Situration of Stagflation is uncommon and hard to explane by economics. When economics expand (Less Unemployment) Inflation is arise, When economics slow down (More Unemployment) Inflation is less.But in situration of stagflation it not go by the pattern the Inflation and Unemployment is in opposite directions.


Stagflation is situration of supply shock that make the effect to goods demand will getting lower extreme fast.


First time in 1970 In the pass stagflation was bring big damage to USA inflation is high to 12% unemployment 9%
Now Stagflation warning as stagflation goes global Stock markets have already fallen sharply in China, India, and Vietnam as the authorities rein in credit.


Stagflation is happen in Asia now.




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