India at risk of stagflation, warns Lombard Street

The term stagflation was coined to describe America's economy in the post-oil shock 1970s, mired with slow to negligible growth but also inflation, with the two conspiring to exacerbate one another. The cycle of malaise lasted until the Federal Reserve under Paul Volcker jacked up interest rates, causing a sharp but contained recession. President Ronald Reagan's tax cuts and deregulation then paved the way for 30 years of expansion. India may be at the beginning of a similar cyc…