While looking across my RSS feeds this morning, “limpflation” caught my eye, and not for the reasons you may be thinking. Actually what caught my eye was “stagflation”, which is a topic I talk about a lot as the economic data (E.D.) points to its occurrence.
Limpflation appears to be a new term for the economy, or at least for one atheistic economist, you know the ones that do not believe in recession. According to a MarketWatch article, Andrew Clare, professor of finance at London’s Cass Business School, believes that the market is fixated on stagflation when in reality it will only see limpflation.
Since stagflation is when both unemployment and inflation are rising (which recent data has shown with increases in both), limpflation is when there is a period of “limp growth” where higher inflation is likely to occur. So, instead of our economy going “stag”, he is saying it will merely go “limp”.
So, add “limpflation” to your dictionary as follows:
LIMPFLATION (limp-flay-shun): Term used to describe when developing E.D. shows a partial lack of growth, or “limp” condition.