As the US and other big economies experienced their worst recessions in decades, one word arose to sum up the problem: stagflation.
Combining stagnation and inflation, it describes persistent inflation accompanied by high unemployment and stagnant consumer demand.
Before this, most economists believed that inflation and recession couldn't grow at the same time. The economic miseries of the '70s convinced them otherwise.
"'Stagflation' is the creature which brought about the willingness of economists to admit that they do not have all the answers, or even a game plan to explain what is happening." Southeast Missourian, September 17, 1974