Stagflation?

I don't see the word uttered very much, but it brings back horrid memories of the 1970s, Jimmy Carter, and disco (which never went away, just changed its name). So with the press seemingly hesitant to utter the word, I'm starting to see a few articles pondering the possibility. One at Econobrowser.com has this intersting question:

If the only incoming data had been the new indications of a pending slowdown in real economic activity, the logical call for the Fed would be to hold the rate constant. If the only incoming data had been the new inflation numbers, the logical call would be for a rate hike. But just what is the logical thing to do when both come at the same time?

We shall see how all this plays out. But having been through stagflation once, I have no desire to see it ever again. Given the current situation, I don't think we'll see it. But events have a way of overtaking markets beyond what we could imagine.

And on a separate note, yesterday the NYSE celebrated its 214th birthday by having the Dow drop 214 points. I could have done without that present.