stagflation :

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stagf lay shuhn

  • n  a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation)

  • Admirers point to the positive developments that happened during Reagan's time in office: the hastened collapse of the Soviet Union; an economic turnaround from the stagflation of .
  • This is one that is bringing back stagflation--that poisonous combination of economic slowdown and eroding currency we cured at a terrible cost back in 1981.
  • Republicans tied Democrat after Democrat to the stagflation and foreign policy weakness of that era.

  • Ben Bernanke in Reuters
    I don't anticipate stagflation,Bernanke said under questioning by the Senate Banking Committee. "I don't think we're anywhere near the situation that prevailed in the 1970s. I do expect inflation will come down."
  • Alan Greenspan in San Francisco Chronicle
    Core inflation is up. Wholesale prices had their highest increase I think in a generation. That raises the specter of stagflation again,said Greenspan, referring to a simultaneous stagnant economy and upward pressure on prices.

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