stagflation
Stagflation (noun) means an economic condition in which prices keep rising while growth stalls and unemployment stays high, so the usual trade-off between inflation and jobs breaks down. Example: “Rising energy costs and flat output revived fears of stagflation.”
How to use stagflation
Learner’s notesIn plain EnglishPrices going up while the economy goes nowhere and people lose jobs.
Standard economic vocabulary, common in news reporting. Strongly associated with the 1970s oil shocks.
Inflation alone is not stagflation. You need the stagnation as well: weak or negative growth and rising unemployment at the same time.
Trace the full origin ↓Fill the gap
Can you complete this real example?
Rising energy costs and flat output revived fears of _____.
Etymology
A blend of stagnation and inflation.
Rhymes for stagflation
Frequently asked questions
What is the difference between stagflation and inflation?
Inflation is simply a general rise in prices, which often happens when an economy is growing strongly. Stagflation is inflation combined with stalled growth and rising unemployment, which is far harder to treat.
Why is stagflation so hard to fix?
The standard tools pull in opposite directions. Raising interest rates cools inflation but deepens the slump and costs jobs, while stimulating growth pushes prices up further, so policymakers must choose which problem to worsen.
What causes stagflation?
Most commonly a supply shock, such as a sudden jump in oil or food prices, which raises costs across the economy while cutting output. Policy mistakes that let inflation expectations become entrenched can prolong it.
What is the meaning of stagflation?
"stagflation" (noun) means an economic condition in which prices keep rising while growth stalls and unemployment stays high, so the usual trade-off between inflation and jobs breaks down.