Results from our content library
AI-Powered Search
Sign in to search for any topic in our content library — get answers, related past year questions, and practice MCQs on the topic.
Sign in to searchStagflation
Stagflation refers to a complex macroeconomic situation characterised by the simultaneous occurrence of high inflation, low or negative economic growth, and high unemployment. It contradicts traditional economic theories such as the Phillips Curve, which suggested an inverse relationship between inflation and unemployment. The term was first used by British politician Iain Macleod in 1965.
Historically, stagflation became prominent during the 1970s oil crisis when OPEC sharply increased oil prices, leading to cost-push inflation and economic slowdown in many developed economies. This episode demonstrated how supply-side shocks, particularly in essential commodities like energy, can disrupt economic stability.
Sign up free to read the full article
Free accounts include 5 articles every month across current affairs, state notes, subject notes and more — upgrade anytime for unlimited access.
Explore stagflation: the simultaneous occurrence of high inflation, low growth, and unemployment. Understand its impact on India's economy and policy responses.
Keywords