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Stagflation back in the 70s was caused by rising oil prices which causes inflation, and a reduction in GDP, which was caused by various factors.
At the start of 2008, GDP was going down, but inflation was still high due to oil prices, so it was thought we where entering a new stagflation period. However, oil prices have gone down since, and there's indications that inflation will not be an issue in 2009.
So in conclusion, as of Jan. 2009, there is no clear indication that we have entered a stagflation period.
What else can I help you with?
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hello
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