Search results

Centres on the impact of stagflation on marketing management in Yugoslavia and on the responses of managers to stagflation. Based on personal interviews and a survey, reports that while the impact of stagflation was drastic, managers responded by taking only mild countermeasures. This high impact‐mild adjustment phenomenon is quite different from reactions in the USA, where high impacts bring extensive adjustments. Explanations for this Yugoslav phenomenon, which have important implications for international marketing, are found in the country′s self‐managed economy.

A survey of marketing executives within randomly selected, major firms in the Philippines investigates firms′ marketing actions in response to stagflation caused by the 1990 Persian Gulf crisis. A central premiss is that there will be differences in sensitivity to macroeconomic conditions between industry sectors. Results show that the manufacturing sector redirects pricing, product and research and development strategies more extensively than non‐manufacturers. These differences may be explained by the extent to which the industry sector is capital‐intensive in its formation and operation. Empirically demonstrates the effects of macroeconomic conditions on firms′ marketing practices and the relevance of the stagflation paradigm outside the United States.

Paul Samuelson was attracted to the irregular economic development pattern of some South American countries because of the links between economic performance and political factors. He discussed the influence of “populist democracy” on Argentina’s relative economic stagnation, which, he argued in the 1970s and early 1980s, served as a dangerous paradigm for the American economy under stagflation. Stagflation phenomena marked the end of Samuelson’s “neoclassical synthesis.” Moreover, he applied his concept of “capitalist fascism” to deal with military dictatorships in Brazil and (especially) in Chile. The Brazilian translation of his Economics in 1973 brought about a correspondence with Brazilian economists about the “fascist” features of the regime. The main variable behind the South American economic and politically unstable processes discussed by Samuelson was economic inequality, which became also a conspicuous feature of the American economy since the adoption of market-based policies in the 1980s and after.

Since the outbreak of COVID-19, tremendous changes have taken place in the US economy – the economic growth in the whole year of 2020 was negative, and though it enjoyed a significant rebound for the first half of 2021, the growth rate began to decline rapidly by the third quarter, and inflation suddenly rises rapidly, which after came the all-time highs of the “misery index” consisted of the inflation rate and unemployment rate. All signs indicate that the US economy will likely enter a “stagflation” crisis.

This paper analyzes the institutional and social contradictions in the United States during the neoliberal era from the perspectives of domestic social structure of accumulation (SSA) and international SSA based on the SSA theory.

The current risk of stagflation in the US economy is a concentrated outbreak of the long-term accumulated contradictions in neoliberal SSA under the impact of the epidemic, which is the product of the irreconcilable contradictions inherent in the capitalist mode of production.

Based on this analysis, the paper points out that with the deepening of the crisis, the neoliberal SSA is likely to end and a new SSA will be established gradually.

Alexandre Tombini, the governor of the Central Bank of Brazil, faced a difficult situation in July 2015. Inflation was in the double digits, well above the target rate of 4.5%, and unemployment had increased from around 4.5% a year prior to nearly 8%. Any actions Tombini took to control inflation would most likely exacerbate unemployment, at least in the short run. To further complicate matters, Tombini's office was not independent of the executive branch of Brazil's government, and Tombini faced the possibility that any of his actions that were not aligned with the priorities of the current administration could cost him his job.

This case follows classes on fiscal and monetary policy in normal times and is the first class in a sequence on macroeconomic challenges–in this case, stagflation–high inflation and high unemployment. Students are pushed to consider why macroeconomic stabilization involves such acute and unpleasant tradeoffs during episodes of high inflation and unemployment. Students use the IS/LM AD/AS model as a reference.

The theory of macroeconomic policy that has dominated thought and policy‐making since the later 1930s is essentially one‐dimensional in the closed economy (and two dimensional in the open economy). That is to say, in a closed economy we have been taught to operate on the level of demand ‐ with any or every macroeconomic instrument. When inflation is too rapid the aim has been to use (some or all of) our policy instruments to reduce demand; and when unemployment is too high we have learned to raise it.