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Home > Question of the Day > What Is Stagflation?

Stagflation is an economic condition in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high. It raises a dilemma for economic policy since actions designed to lower inflation may worsen economic growth and vice versa.

Stagflation is also notable because it has generally proven to be difficult and, in human terms as well as budget deficits, very costly to eradicate once it starts.

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