Nature
A combination of inflation and sluggish, near-zero growth. National growth as measured by domestic output may show little gain from year to year (for example, less than 1%) yet wages and other costs may keep rising. This generates an inflation several multiples higher than the stagnant rate of growth, and leads to economic crises.
Incidence
Stagflation was one of the after-effects of the 1970s oil-price shock. The failure of many industrial countries to respond firmly and quickly to the inflationary impact of the quadrupling of the oil price over a few months saddled many countries with an inflationary legacy which took many years to overcome.
Claim
Stagflation is a dire economic threat that demands urgent attention. The toxic combination of stagnant growth, high unemployment, and soaring inflation devastates families, erodes savings, and cripples businesses. Ignoring stagflation risks long-term economic decline and social unrest. Policymakers must confront this crisis head-on—half-measures are unacceptable. The well-being of millions hangs in the balance, making stagflation not just an important problem, but one of the most pressing challenges of our time.
Broader
Aggravated by
SDG
Metadata
Database
World problems
Type
(D) Detailed problems
Biological classification
N/A
Subject
- Economics » Economics
Content quality
Presentable
Language
English
1A4N
C2536
DOCID
11325360
D7NID
155530
Editing link
Official link
Last update
Oct 4, 2020