Meaning of the word stagflation in English

What does stagflation mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

stagflation

US /stæɡˈfleɪ.ʃən/
UK /stæɡˈfleɪ.ʃən/
"stagflation" picture

Noun

a portmanteau word in economics referring to a situation where the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions taken to lower inflation (like raising interest rates) may worsen unemployment, and vice versa.

Example:
The 1970s were characterized by widespread stagflation in many developed economies.
Economists are concerned about the potential for renewed stagflation if current trends continue.