Definition, Meaning & Synonyms

stagflation

Noun

/stæɡˈfleɪʃən/

Definition

A situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

Examples

The country experienced stagflation during the 1970s, leading to widespread economic struggles.
Policymakers often find it challenging to combat stagflation as traditional tools can worsen either inflation or unemployment.
Many economists debate the causes of stagflation and how best to address it.

Meaning

Stagflation refers to an economic condition characterized by stagnant economic growth, high unemployment, and high inflation, often leading to a difficult economic environment.