stagflation in A Sentence
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Do you know what"Stagflation" is?
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As we saw in the 1970s, pursuit of excessive wage increases risks Stagflation, resulting in inadequate investment and rising unemployment.
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Stagflation is not due to any actual supply shock, but because of the societal crisis that hints at a supply crisis.
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Our theory thus suggests that the problems of Stagflation in the 1970s were not as far removed from today's problems as one might think.
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When mergers and acquisitions are no longer politically feasible(governments clamp down with anti-monopoly rules), Stagflation is used as an alternative to have higher relative profit than the competition.
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In 2008, the prices of many commodities, notably oil and food, rose so high as to cause genuine economic damage, threatening Stagflation and a reversal of globalization.[17].
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When asked if the Indian economy is entering into a stage of'Stagflation', the Finance Minister said,"I am not willing to discuss as to where the economy stands.
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However, in the 1970s and 1980s, when Stagflation occurred, it became obvious that the relationship between inflation and employment levels was not necessarily stable: that is, the Phillips relationship could shift.
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Explain that the SBI's research report has said that if the inflation in food items does not come down, then in the coming time the Indian economy may be in a state of Stagflation.
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Supply theories[13]are based on the neo-Keynesian cost-push model and attribute Stagflation to significant disruptions to the supply side of the supply-demand market equation, for example, when there is a sudden real or relative scarcity of key commodities, natural resources, or natural capital needed to produce goods and services.
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