economics

stagflation

An economic condition characterized by slow growth, high unemployment, and high inflation simultaneously.

Example

"The 1970s oil crisis led to stagflation in the US, with both high inflation and high unemployment."

💡 Memory Tip

STAG-flation = STAGNATION + INFLATION. The economy is stagnant AND prices are rising.

Etymology

Stagnation (no growth) + inflation — the worst of both worlds combined.

Common Misspellings

stagflaionstagflasionstagnationstagflatin

Related Terms

inflationrecessionmonetary policy

See Also

unemployment

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