Stagflation, the Scourge of the 1970s, Is Back

Mr. Braun is a clinical professor of finance at Northwestern University’s Kellogg School of Management.

Some readers may recall the misery of rampant stagflation in the 1970s. The fusion of inflation and stagnant economic growth destroyed millions of jobs while eroding virtually everyone’s purchasing power, ensuring there was no escape from economic pain for most Americans. Now, stagflation is returning after decades of dormancy. How pervasive will it become?

The person most responsible for answering that question is the Federal Reserve chairman, Kevin Warsh. The newly installed chair won his job by convincing President Trump that they shared similar........

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