What is stagelation?

Answer 1

Stagflation is an economic condition characterized by the simultaneous occurrence of stagnant economic growth, high unemployment, and high inflation. This scenario poses a significant challenge for policymakers, as measures to combat inflation can exacerbate unemployment and slow growth further. The term gained prominence during the 1970s when many advanced economies experienced these adverse conditions. It highlights the complexities of managing an economy when traditional tools may not effectively address all issues at once.