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Why Is a Period of Stagflation Part of the Normal

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Why is a period of stagflation part of the normal aftermath of a period of excessive aggregate demand?


Definitions:

Postmodernity

A condition or era after modernity characterized by skepticism towards grand narratives and ideologies, embracing pluralism and cultural diversity.

Modernity

The quality or condition of being modern, characterized by the transition from feudalism to capitalism, industrialization, secularization, and the rise of democratic states.

Erosion of Authority

The gradual loss of credibility, influence, or power by individuals or institutions in positions of authority.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence of the world's markets and businesses.

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