Problem
Stagflation
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.
Broader Problems:
Economic uncertainty Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
04.10.2020 – 22:48 CEST