Stagflation Definition

Stagflation is an ailment of slow fiscal growth and somewhat high unemployment – a period of time of stagnation – with a rise in price ranges, or inflation. Stagflation occurs if the economy isn’t increasing but prices are usually, which is wii situation for a country to be in. This happened into a great extent through the 1970s, when world oil prices went up by dramatically, fueling razor-sharp inflation in developed countries. For these kinds of countries, including the actual U. S., stagnation increased the inflationary outcomes.