The LA Times ran a story today that once again invoked the dreaded “S” word: stagflation.  Stagflation in the seventies was the double jeopardy of rising prices in the context of a languishing economy, a condition on which monetary policy bears only minor influence (okay, bad pun).

“The economy could be facing a bout with stagflation,” said Peter Morici, a University of Maryland business school professor. “My feeling is we’re headed for a tragedy here.”

Dean Baker, co-director of the Center for Economic and Policy Research, said he also viewed stagflation as a possibility as credit tightening further damps the housing market and puts a crimp on the spending of homeowners.

“The May price data provides grounds for concern on several fronts,” he said.

“I think we’re in for some tough times.”