And a further risk is that the falling dollar would unleash inflationary expectations.

But if it is inflationary expectations, then the change will have a much smaller effect.

Dropping gold prices are considered a sign of reduced inflationary expectations.

All the evidence, he says, suggests that inflationary expectations are incorporated very slowly into markets.

When inflationary expectations subside, these people will get their jobs back.

But at this moment, you should worry most about a resurgence of inflationary expectations.

These in turn encourage lower inflationary expectations, so that inflation itself drops again.

In this theory, it is not only inflationary expectations that can cause stagflation.

The reason for this is that inflationary expectations are revised according to what has happened to inflation in the past.

The remedy required was a shock to break inflationary expectations.