term coined by economists in the 1970s to describe the previously unprecedented combination of slow economic growth and high unemployment (stagnation) with rising prices (inflation). The principal factor was the fourfold increase in oil prices imposed by the Organization of Petroleum Exporting Countries (OPEC) cartel in 1973-74, which raised price levels throughout the economy while further slowing economic growth. As is characteristic of stagflation, fiscal and monetary policies aimed at stimulating the economy and reducing unemployment only exacerbated the inflationary effects.

term coined in the 1970s to describe an economic situation of stagnant economic condition with inflation.

Example:In the 1970s stock market performance was poor because the economy caused weak corporate earnings and interest rates were high due to inflation. Tangible real estate without long-term fixedincome leases performed well during this period of stagflation.

term coined by economists in the 1970s to describe the previously unprecedented combination of slow economic growth and high unemployment (stagnation) with rising prices (inflation).