stagflation
Stalled yet pricier
Stagflation is an economic condition combining stagnant growth, high unemployment, and persistent inflation—a troublesome combination because the usual remedies for inflation tend to worsen unemployment and vice versa.
The term emerged in the 1970s when oil shocks produced exactly this scenario in Western economies: The Fed struggled to address stagflation without making either problem worse.
Being without paid work
- recessionProlonged economic decline
- malaiseDiffuse, sourceless discomfort
- crisisDecisive dangerous moment
- downturnEconomic decline period
slump · contraction · slowdown · doldrums · torpor · lethargy · paralysis · quagmire
Fourth decade, twentieth century
- oil crisisSevere petroleum supply disruption
- OPECPetroleum exporters' coalition
- Nixon37th U.S. president
- FordMajor American automaker
Carter · Keynesian · monetarism · Friedman · supply shock · petrodollars · gold standard · energy crisis
Being without paid work
- povertySevere lack of resources
- inequalityUnequal distribution of resources
- hardshipSuffering from difficult circumstances
- layoffsMass job eliminations
budget deficits · debt · austerity · social unrest · capital flight
Sudden change in production capacity
- oil pricesCost per barrel
- cost-pushInflation from higher production expenses
- commodity pricesCost of traded raw goods
- currency devaluationReducing money's official value
Enforced economic stringency
- retrenchmentReduction of expenditures
- fiscal stimulusGovernment spending to boost economy
- supply-sideProduction-centered economic theory
- interest ratesPrice paid for borrowing
wage controls · price controls · deregulation · indexation · adjustment · intervention · quantitative easing · tradeoff
unemployment
Being without paid work
- recessionProlonged economic decline
- malaiseDiffuse, sourceless discomfort
- crisisDecisive dangerous moment
downturn · slump · contraction · slowdown · doldrums · torpor · lethargy · paralysis · quagmire · morass
1970s
Fourth decade, twentieth century
- oil crisisSevere petroleum supply disruption
- OPECPetroleum exporters' coalition
- Nixon37th U.S. president
Ford · Carter · Keynesian · monetarism · Friedman · supply shock · petrodollars · gold standard · energy crisis
unemployment
Being without paid work
- povertySevere lack of resources
- inequalityUnequal distribution of resources
- hardshipSuffering from difficult circumstances
layoffs · budget deficits · debt · austerity · social unrest · capital flight
supply shock
Sudden change in production capacity
- oil pricesCost per barrel
- cost-pushInflation from higher production expenses
- commodity pricesCost of traded raw goods
currency devaluation · labor costs · bottlenecks · shortages
austerity
Enforced economic stringency
- retrenchmentReduction of expenditures
- fiscal stimulusGovernment spending to boost economy
- supply-sideProduction-centered economic theory
interest rates · wage controls · price controls · deregulation · indexation · adjustment · intervention · quantitative easing · tradeoff
- economyGDP, money, GNP, market, banking sector
- 70sdisco, bell-bottoms, Saturday Night Fever, pet rock, leisure suits
- economic crisisrecession, depression, collapse, downturn, contraction
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
- economic problemsmarket failure, recession, debt crisis, financial crisis, trade deficit
- financial risksbad debt, credit risk, insolvency, market crash, volatility
stagflationeconomic boom
Sustained period of growth
prosperity · economic growth · boom · growth · expansion
inflate, inflation, inflated, deflated, deflation, stagnation, inflating, deflating, hyperinflation