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CEFR C1 — Advanced

Stagflation

Definition

(formal, economics) A situation in which there is a combination of high inflation, stagnant economic growth, and high unemployment, often leading to a decline in the standard of living.

Example Sentences

1The country experienced a period of stagflation in the 1970s, characterized by rising prices and widespread unemployment.
2Is stagflation a likely outcome of the current economic policies, given the rising national debt and stagnant wages?
3The economist argued that the government's decision to increase interest rates would exacerbate the stagflation, rather than alleviate it.
4To combat stagflation, the central bank may need to implement a combination of monetary and fiscal policies.
5Historically, periods of stagflation have often been accompanied by a decline in consumer confidence and a decrease in business investment.

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