Market Lingo: Stagflation

By Matt Ford Jun 11, 2007 5:33 pm

Stagflation means stagnant economic growth in an environment of rising prices.





Expanding on the Minyanville dictionary to explain the jargon frequently used by Minyanville professors on the Buzz.


Minyanville profs occasionally discuss stagflation (here, here, here).  Essentially, stagflation means
stagnant economic growth in an environment of rising prices.

As Professor Depew notes in this fine stagflation primer, the last significant bout of stagflation in the US occurred in the 1970s. Some believe that another period of stagflation may be approaching. 

If so, such a situation may be temporary because stagflation could mark a transitory phase as an economy moves from an inflationary to deflationary environment.  If prices of commodities collapse, then stagflation morphs into deflation.

Other terms related to inflation include inflation and deflation.


Look up other terms at the Market Lingo Library

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