Stagflation

Stagflation is a name of such situation where inflation and unemployment simultaneously exist. Infect stagflation means high inflation in periods of high unemployment. The word stagflation is combination of two words "stagnation" and "inflation". Stagnation means high unemployment and inflation is a persistent rise in the general price level.


Different definitions of stagflation:
Stagflation has been defined by many economists in following ways:

According to J. Barro:
"Stagflation is a situation where a recession is accompanied by high and rising inflation."

According to G Thomas:
"Stagflation is the combination of stagnation or recession and inflation in the economy."

According to Gregory:
"Stagflation is the combination of high unemployment and high inflation in the stagnant economy."