If Trump stimulates the economy, one result could be growth. Another? Stagflation

Gigi Douban Nov 14, 2016
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Traders at the Frankfurt Stock Exchange watch Donald Trump after he wins the U.S. presidential elections. Thomas Lohnes/Getty Images

If Trump stimulates the economy, one result could be growth. Another? Stagflation

Gigi Douban Nov 14, 2016
Traders at the Frankfurt Stock Exchange watch Donald Trump after he wins the U.S. presidential elections. Thomas Lohnes/Getty Images
HTML EMBED:
COPY

Some of President-elect Donald Trump’s campaign promises could stimulate the economy: increased spending on infrastructure and defense, and big tax cuts. But add in his plans to revise trade pacts and deport millions of immigrants, and some economists are warning the result might not be growth so much as stagflation: higher inflation and higher unemployment with little growth. For those who experienced it in the 1970s, it was an economic nightmare.

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