stagflation


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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.
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. 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.
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), 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 ?
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.
Stagflation occurs when the economy isn't growing but prices are.
It was stagflation with a vengeance, a motionless--indeed, shrinking--economy in the context of intolerable increases in prices.
There are many elements to the stagflation dynamic, some of them relating to the business environment and others stemming from social conditions.
In the Pakistan context, two reasons can be noted to explain the incidence of stagflation.
We are not getting the full effect of these negative indicators in the headline inflation, which suggests that there are mitigating factors because it reflects that the economy could be slowing down, it leaves us with a worse situation of stagflation, and we must get out of this," she stressed.
Excess monetary stimulus caused stagflation in the U.
It is also widely recognized that this era of prosperity really ended not in 1980, but with the stagflation of the 1970s.
Morgan's emphasis on the effects of stagflation on budget discipline captures an important element of the story but leaves a puzzle.
The economic managers in Islamabad need to control the inflation and boost growth to prevent the country from going into a prolonged spell of stagflation.
The true danger for Macedonia is stagflation, a situation in which the inflation rate is high and the economic growth rate is low.
24 STAGFLATION THE economy's shock contraction raised the spectre of stagflation as Britain also faces the threat of rising cost pressures.