The portmanteau “stagflation” – a combination of stagnation and inflation – was first used in 1965. It refers to a situation with no economic growth but with rising prices, which in 2008 Money Week called a “toxic cocktail”.
The FT on October 3, 2022 mentioned
Gaurav Ganguly, senior director of economic research at Moody’s Analytics, said the government’s “recent actions had made stagflation and a deep recession almost inevitable”.
However, one of the perplexing things is that stagflation by definition is related to high unemployment but that currently is not the case as many economies are not experiencing high unemployment.