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What is stagflation and why is everybody worried about it?

It's all over the news....

If you were around in the '70s you would know...and know that you should be worried. This is going to be much worse than the '70s. Stagflation is just what the name says...a stagnate economy with inflation (inflation is normally found in a growth economy rather than a stagnate one).


prices go up but wages don't, things grind to a halt, the economy withers, jobs go away, nobody has money to do anything with, the last step before a full on depression.

Porkenstein AKA Pork, Porky, Porkens:

It is a 70's term since it last happened during Carter. It basically refers to the fact that normally unemployment and inflation go in opposite directions (ie high inflation=low unemployment or vice versa). Stagflation refers to a really undersirable situation that bucks the norm by having high unemployment AND high inflation at the same time (with flat GDP growth for good measure)

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