Okuzeka
Economics vocabulary · Inflation and Prices

Stagflation

Meaning in economics, with examples

/stæɡˈfleɪʃn/nounCommon term

In economics, stagflation means: A painful mix of high inflation, weak or no growth and rising unemployment, all happening at the same time.

In Turkish: stagflasyon

How it is used

A blend of stagnation and inflation. It is hard for policymakers, because raising rates to fight inflation can deepen the slowdown. The oil price shocks of the 1970s are the classic example; analysts warn of stagflation risks when energy prices jump.

Example sentences

  1. The oil shocks of the 1970s pushed many Western economies into stagflation.

  2. With prices rising and output shrinking, some economists say the country is already in stagflation.

Common collocations

  • stagflation risk
  • fall into stagflation
  • fears of stagflation
  • a period of stagflation
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • recessionA significant fall in economic activity lasting months, with falling output, income and jobs; often defined as two quarters in a row of shrinking GDP.
  • unemploymentThe situation of people who have no job but are available for work and actively looking for one; also the number or share of such people.
  • monetary policyThe actions a central bank takes to influence interest rates, the money supply and credit in order to control inflation and support the economy.

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.