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Stagflation Meaning: Definition, Examples, and Translations

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stagflation

stagfla-tion

🇺🇸 /stæɡˈfɫeɪʃən/ · 🇬🇧 /stæɡflˈeɪʃən/

Definition

Context #1 | Noun

economic condition

Stagflation is an economic condition characterized by a combination of stagnant economic growth, high unemployment, and high inflation. It poses a significant challenge for economic policy, as the measures that may control inflation might exacerbate unemployment and vice versa.

Synonyms

economic stagnation, inflationary recession.

Examples of usage

  • The country is currently facing stagflation.
  • Stagflation is difficult for governments to manage.
  • Many economists believe stagflation could return.
  • Historical stagflation occurred in the 1970s.

Translations

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Quick facts about “stagflation”

Stagflation is a 2-syllable noun (stagfla-tion). It is pronounced /stæɡˈfɫeɪʃən/ in American English and /stæɡflˈeɪʃən/ in British English. On finesentence.com it has 1 meaning, 2 synonyms, and translations into 21 languages. It ranks #34,057 among the most common English words.

Origin of 'stagflation'

The term 'stagflation' emerged in the 1960s during a period of rising inflation and rising unemployment in the United States and the United Kingdom. It combines the words 'stagnation' and 'inflation' to describe a unique and challenging economic condition that defies conventional economic theory. Prior to its popularization, economists believed that inflation and unemployment had an inverse relationship, famously illustrated by the Phillips curve. However, the experiences of the 1970s, particularly the oil crises leading to high prices while economies stagnated, demonstrated the possibility of both high inflation and high unemployment occurring simultaneously. The popularity of the term reflects a significant turning point in economic thought, as policymakers grappled with how to address the complexities of stagflation.

Word Frequency Rank

This word's position of #34,057 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.