Simple Definition of stagflation
: an economic situation in which prices of goods and services continually increase, many people do not have jobs, and businesses are not very successful
Did You Know?
Stagflation is a portmanteau, that is, a word that blends two others (in this case, "stagnation" and "inflation"). The first documented use of the word appeared in 1965 in the writing of British politician Iain Macleod, who wrote, "We now have the worst of both worlds - not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of 'stagflation' situation." Macleod is often credited with coining the term, and his linguistic invention was quickly embraced by economists in the United States, who used it to refer to the period of economic sluggishness and high inflation that affected the country in the 1970s.
Origin and Etymology of stagflation
blend of stagnation and inflation
First Known Use: 1965
Learn More about stagflation
Britannica.com: Encyclopedia article about stagflation
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