Canada is leaning toward a new era of 1970s-style stagflation as the pace of economic growth slows yet inflation remains stubbornly high, economists say.
The abnormal mix of rising prices and high joblessness gripped the country 40-odd years ago.
Supply shocks sent energy costs soaring, interest rates climbed to devastating heights and unemployment was rampant.
Now some experts say conditions are ripe for a return of the economic phenomenon.
“I would say in the next year we’re looking at a recession in this country, which in combination with continued inflation could spell stagflation,” said Armine Yalnizyan, an economist and Atkinson Foundation fellow….