Username: Peter Rating: Asked to: Chaoxiang Lee Date Created: 20 Nov 2015 |
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Category | 28 |
Tag | Financial |
Question | What is stagflation in economics? |
Hi Peter, A condition of slow economic growth and relatively high unemployment – economic stagnation – accompanied by rising prices, or inflation, or inflation and a decline in Gross Domestic Product (GDP). Stagflation is an economic problem defined in equal parts by it’s rarity and by the lack of consensus among academics on how exactly it comes to pass. Stagflation can prove to be a particularly tough problem for governments to deal with due to the fact that most policies designed to lower inflation tend to make it tougher for the unemployed, and policies designed to ease unemployment raise inflation. |
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