Glossary · from the DESK dictionary
Stagflation
An unusual economic condition in which stagnant economic growth occurs simultaneously with high inflation and high unemployment.
In plain words
Presents central banks with a particularly difficult dilemma, since measures against inflation can worsen unemployment.
What it means for traders
An important historical and practical macroeconomic concept, particularly relevant since the 1970s.
Common pitfalls
Contradicts traditional Keynesian models, substantially complicating monetary policy response.
Related terms
1979 Energy Crisis · Larry Summers · Recession
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.