WordValestagflation
stagnant growth combined with high inflation
In more detail
a situation in which prices rise very quickly (inflation) while the economy is not growing and unemployment is high (stagnation)
Examples
- The country experienced stagflation in the 1970s, making it difficult for both consumers and businesses.
How to use stagflation
Stagflation is a technical economic term describing a particularly difficult macroeconomic condition that combines high inflation with slow or negative growth and high unemployment. It is used in economics, policy discussions, and financial journalism to describe situations that are especially challenging for policymakers because traditional monetary policy tools are ineffective against both problems simultaneously.
Common phrases
- stagflation crisis
- period of stagflation
- risk of stagflation
- combat stagflation
- stagflation environment
Synonyms
economic stagnation · inflationary recession · slump with inflation
Word family
stagflationary (adjective)
A common mistake
Learners sometimes confuse stagflation with simple recession or stagnation alone; stagflation specifically requires the simultaneous presence of inflation, which distinguishes it from ordinary recessions where prices may fall or remain stable.
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