Skip to main content

What does stagflation mean?

Stagflate is inflation and economic stagnation

In general, economists adhere to the following principle: growth has inflation and shrinkage deflation. Milton Friedman (economist and Nobel Prize laureate) predicted that stagflation was possible, and in the years 70 there was also stagflation. The most common approach is based on a change in demand for products, however: prices are partly dependent on the offer. When companies offer less, the prices will rise (at a constant demand). If production goes back, the price is going up. Stagflation is difficult to counteract, a tax reduction can provide a solution.

What is stagflation? YouTube IkVEJKg6q34 [/youtube]

Leave a Reply

Your email address will not be published.