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Energy Shocks are Disinflationary

The Iran War is a fourth fiscal adverse aggregate demand shock, in other words, disinflationary

Here is a video summarizing our March 14 note, Energy Shocks are Disinflationary

Figure 4: LBJ & Nixon’s Great Society War on Poverty were the primary catalyst for the Great Inflation, like most inflation cycles it began with fiscal policy and later the central bank was charged with cleaning up the mess, a difficult task at best.

Barry C. Knapp

Managing Pa…

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