Stagflation

Quick meaning: Stagflation is a noun meaning (economics) Prolonged high inflation accompanied by stagnant growth, often with recession and high unemployment.

Meaning

(economics) Prolonged high inflation accompanied by stagnant growth, often with recession and high unemployment.

Example Sentences

"[Donald Trump's tariff proposal] is a prescription for the mother of all stagflations,” Larry Summers, Treasury secretary during the [Bill] Clinton administration, told Bloomberg TV back in June.

Moving into the mid-1970s, America's economic performance suffered. Stagflation—inflation combined with minimal economic growth—eroded wages and profits, weakening business and consumer confidence.

The UK economy is suffering a nasty bout of stagflation and the prospects appear poor. That is the conclusion financial markets drew this week from yet more disappointing data, highlighting the weakness of the post-Covid economy and the persistence of high inflation.

As soon as we understand how involuntary unemployment can result from rational and well-informed individual behavior, it also becomes obvious how inflation and unemployment—which we once thought could not occur simultaneously—can be combined, as they have been in the recent stagflation.

Word Forms

• stagflations

Related Words

Related dictionary entries include stagnancy, sluggishness, staginess, stickiness, staleness, astaticism.

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