stagflation


Also found in: Dictionary, Thesaurus, Financial, Wikipedia.
Related to stagflation: Camp David Accords

stagflation,

in economics, a word coined in the 1970s to describe a combination of a stagnant economy and severe inflationinflation,
in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S.
..... Click the link for more information.
. Previously, these two conditions had not existed at the same time because lowered demand, brought about by a recession (see depressiondepression,
in economics, period of economic crisis in commerce, finance, and industry, characterized by falling prices, restriction of credit, low output and investment, numerous bankruptcies, and a high level of unemployment.
..... Click the link for more information.
), usually produced lower, or at least stable, prices. Large U.S. government deficits and sharp rises in the costs of energy have been cited as the chief causes of stagflation in the 1970s.

stagflation

(ECONOMICS) a type of INFLATION in which wages and prices rise despite relatively low rates of economic growth and relatively high levels of unemployment. This phenomenon is explained in part by the existence of labour solidarity and effective trade-union action.

stagflation

Economics a situation in which inflation is combined with stagnant or falling output and employment
References in periodicals archive ?
It wouldn't be too much to see it as forebodings of stagflation."
If Greenspan is right and we are seeing the beginning of an era of stagflation, the great bull market in bonds could be about to end, and the Fed may have to turn its focus back to inflation again rather than growth stimulation - and do things that are radical and aggressive enough to surprise the markets.
The ultimate impact of coflation, stagflation or other trends we don't know about depends on where we are in one's life cycle:
Stagflation occurs when the economy isn't growing but prices are.
Kemp, representing a Buffalo, N.Y., experiencing de-industrialization in the face of stagflation, began crafting a bill to put things into practice.
"Basically, there is a group of countries with developing economies, including Russia, that face the problem of stagflation: slowing economic growth accompanied by a spike in inflation," Ksenia Yudayeva told the annual Gaidar Economic Forum in Moscow, cited by RIA News Agency.
There are many elements to the stagflation dynamic, some of them relating to the business environment and others stemming from social conditions.
It may be noted that during the period FY-81 to 89, economic growth was high with low rate of inflation, during the period FY-90 to 01 there was a moderate economic growth with high to moderate inflation, during FY-01 to 07 there was a high economic growth with low inflation, and during the period FY-07 to 11 the gap between economic growth and inflation rose so much that it has been rightly referred as 'stagflation'.
However, Magda Kandil, economist and executive director of the Egyptian Center for Economic Studies, is wary that the country's economy may be approaching a standstill, or stagflation.
"Stagflation" is a term that became common in American households in the mid 1970s to describe a period of both inflation and low or declining economic growth.
Interest in Hayek at that time was enhanced by the failure of the then-dominant Keynesian macroeconomics to explain or provide policies to reverse the stagflation. This stagflation had been triggered by the application of Keynesian policies and expansion and growth of government in the 1960s and 1970s (Hayek, 1979).
I thought 'stagflation' referred to stalking at Balmoral" Best-selling writer Kathy Lette "The thing that will haunt me for the rest of my life is that bloody photograph of myself in a bikini" Actress Dame Helen Mirren "A monumental waste of public time and money" Judge Alex Milne attacks London's Waltham Forest Council for pursuing what turned out to be an unsuccessful fly-tipping prosecution