It is too early to know for sure, however the following article raises the possibility for stagflation in the UK, perhaps spreading in the EU and global economy:
Brown, Mark, 2011. Fitch warns of Europe stagflation risk. The Wall Street Journal, Feb. 9.
Stagflation is a situation where inflation is elevated along with weak GDP growth. America experienced stagflation during the 1970's because of two severe oil shocks in 1973 and 1977.
This is a development worth tracking.
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