Stagflation - the boogeyman of policymakers and the middle class alike. 🫢 Let's cover the definition of stagflation and see if it has any effect on crypto with CMCAlexandria 👇
But we already have inflation! In fact, we have been doing the opposite and have been increasing interest rates.stagflation trapBut those rate hikes make a recession more probable.To add insult to injury, the— if you expect goods to become more expensive, you buy today rather than tomorrow and fuel the same inflation you fear.
. This means assets that preserve value, like gold, do especially well . Just look at its big bull run leading into the 1980s:Admittedly, lifting the ban on owning gold in 1975 helped, but gold has traditionally been an inflation hedge. Compare that to the performance of the stock market, which traded sideways for most of the 1970s:Of course, not all equities are created equal.