As gas prices break records, World Bank warns of 1970s-style 'stagflation'

As U.S. gas prices reached an all-time high, the World Bank issued a warning that a combination of rising inflation and a slowdown in economic growth could lead the global economy into 1970s-style 'stagflation.'

issued a warning that a combination of rising inflation and a slowdown in economic growth could lead the global economy into 1970s-style"stagflation."to AAA.

."For many countries, recession will be hard to avoid. Markets look forward, so it is urgent to encourage production and avoid trade restrictions. Changes in fiscal, monetary, climate and debt policy are needed to counter capital misallocation and inequality.

However, it was also noted that the current economy differs from that of the 1970s in several important areas, including the U.S. dollar currently being strong, smaller percentage increases in commodity prices, strong"balance sheets of major financial institutions" and better controls on price stability through central banks and a track record of meeting inflation targets.

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