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 ?
What we do know is that the government did not try this alternative and instead headed into a completely opposite direction and drove the country to a stagflationary trap, whose complete negative effects on output, employment, incomes and income distribution are still to be seen.
The stagflationary crisis of the mid to late 1970s was the catalyst for a major rethink in the ranks of the capitalist classes and their states (Harman, 2009: 192).
Three of them - the Great Depression, the stagflationary period from 1974 to 1982, and the current "Great Recession" - have been devastating.
Although the stagflationary mechanisms of decades ago appear to have been broken by globalisation - neither does inflation rise so much nor does growth fall so much - still at current levels there is bound to be some impact among oil importing countries.
In researching it, I discovered how often experts and pundits made virtually the same predictions when America's economic fortunes took a turn for the worse: in 1873, again in 1893, again in 1929, and again in the post Vietnam, stagflationary 1970s.
economy will find itself in the horrors of a stagflationary spiral.
US inflation accelerated in June to its fastest rate since the aftermath of Hurricane Katrina in 2005 while workersCO earnings slumped, compounding the stagflationary dilemma facing the Federal Reserve, Reuters reported.
The stagflationary mix will be especially acute in the United States, whose GDP will grow by only 1.
Policymakers adopted monetarist ideas partly because of the deficiencies of the Keynesian framework in stagflationary circumstances as noted above, and partly because a new way of anchoring prices in the economy was needed following the widespread move to floating exchange rates after the collapse in the early 1970s of the Bretton Woods framework of fixed exchange rates between the major economies.
Notwithstanding the upcoming VAT hike in Germany, which should impart a mild stagflationary shock to the euro area in early 2007, the central scenario for the next two years is one of stable growth, somewhat above potential, and mild inflation, in a context where the shortfall of aggregate demand is being progressively worked off.
39) Under these conditions "corporate concentration is typically maintained and enhanced by expanding the depth of accumulation: the large corporations try to raise their profit margins above those of smaller periphery firms and the ensuing profit competition often culminates in stagflationary spiral.