Following a benign period of a positive global supply shock, a positive global demand shock has led to global overheating and rising inflationary pressures. Now the worries are about a stagflationary supply shock say, a war with Iran coupled with a deflationary demand shock as housing bubbles go bust.

This positive supply side shock was followed starting in 2006 by a positive global demand shock fast growth in Chindia and other emerging markets started to put pressure on the prices of a variety of commodities. Strong global growth in 2007 marked the beginning of a rise in global inflation, a phenomenon that, with some caveats (the sharp slowdown in the US and some advanced economies), continued into 2008.

When a positive technological shock raises real wages, people will work more, causing output to surge. In the face of a negative shock, workers will increase their leisure, causing output to fall.

Shock, horror.

A shock.

And that's the shock of recognition at the shock of recognition.

This would result in a number of positive spillovers, on both the demand and the supply side.

But short of such a negative supply side shock, is global stagflation possible? Between 2004 2006 global growth was robust while inflation was low, owing to a positive global supply shock the increase in productivity and productive capacity of China, India and emerging markets.

The Boehner Shock

Shock and Panic

State of shock.

What a shock.

It's the shock.

A terrible shock.

Supply demand ratios are expected to be positive for some countries under some climate scenarios and negative for others.

Such a cost shock has a more prolonged effect than a negative demand shock. Without negative external shocks, exorbitant TFP growth would have declined gradually, as the returns from institutional adjustment, reallocation of resources, and technological catch up naturally diminished, in accordance with the convergence hypothesis.

Accumulating excessive debt usually entails moving some part of domestic aggregate demand forward in time, so the exit from that debt must include more savings and diminished demand. The negative shock adversely impacts the non tradable sector, which is large (roughly two thirds of an advanced economy) and wholly dependent on domestic demand.

She's suffering from shock.

The shock, and everything.

How about a shock?

It's quite a shock.

Yes. That's a shock.

With Allison, severe shock.

Most saw a clear niche and demand for its services, and felt confident about the positive business and financial trends.

The Nixon Shock Doctrine Revisited

The World s Biggest Shock Absorber

This watch is shock proof.

So he died of shock.

Now, this might shock you.

Prepare yourself for a shock.

Pop, you want a shock?

The shock would kill you.

Delayed shock, they called it.

Must have been a shock.

But it was a shock.

The shock was too great.

He's had a terrible shock.

You were hospitalized... for shock.

The first shock hurts like hell.

From Shock Therapy to Sleep Therapy

warning, this can shock your mind )

What brought it on? Some shock.

She's in a state of shock.

It's quite a shock, you know.

Maybe it's the electric shock therapy.