... profits, increasing expenses and the resulting reduction in financial liquidity II FACTS STAGFLATION IN THE 1970s [Type text] Page STAGFLATION IN U.S People often refer to the 1970s stagflation as the ... unwelcome combination of looming recession and persistent inflation that is reviving angst about stagflation, a condition not seen since the 1970s” At the beginning of 2008, inflation was rising The Labor ... (SMEs) enabling them to purchase labor and other supplies In cyclical upswings, SMEs have traditionally been the main engines for increasing employment, but not in the very weak upswing of 2010-11,...