Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes
How Wage Growth Fuels Modern Stagflation
Lucas and Luna examine the specific mechanics of how rising average hourly earnings interact with slowing real GDP growth to create a stagflationary environment. With core CPI holding near 337 and job openings cooling, they analyze whether current wage pressures are structural or temporary, focusing on the disconnect between nominal pay increases and actual purchasing power in late 2026.
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The skinny
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