Could Australia be heading towards another bout of 1970s-style “stagflation” – that is, stagnant growth, unemployment and rising inflation?When the sub-prime financial crisis hit the United States, received opinion in Australia – which included this writer – believed that our economy would be unaffected by it, except perhaps for a slight backwash effect.That view seemed to make sense at the time. Our banks were not involved to any great extent in sub-prime lending, and thus should not have suffe…
