Thank and comment post below ------

Thanks for this good discussion. I just started in on Mod 7 lectures, and Part 2 opens up the consideration for globalization int he models we have been discussion. So, this evolving discussion is timely. I agree with Francis in the post above. Stagflation could simultaneously impact global trading and increase prices which could make it more expensive to do business. This could continue inflation in other countries. Unemployment can also impact global output, consumer confidence, and spending. As you mentioned, Francis, there can be different policies and ways to implement those policies. Economies relying on global relationships may be more or less affected.