A combination of high oil prices, high unemployment, high interest rates and a resulting sharp drop in ecomomic activity and consumer spending.
1970's
Government programs discoruaging stagflation
Government programs discoruaging stagflation
Government programs discoruaging stagflation
Government programs discoruaging stagflation
none, stagflation has only existed in the 1970's as a phenomena created by external factors. we are constantly in danger of stagflation when unemployment is high and external forces create tension in the markets, but following classical economic theories recession and inflation are mutually exclusive.
oil prices increased
Watergate and the failure of the Vietnam War policy.
Funnily enough, it's called stagflation...
oil prices increased
Watergate and the failure of the Vietnam War policy.
Stagflation was the combination of increasing inflation and unemployment that the US was experiencing. It was occurring because OPEC placed a trade embargo for oil on the US because the US had supported Israel in a war against Iraq.