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What is Stagflation?

What is Stagflation? (Definition)

Stagflation is a term that was first introduced in 1965 by Iain Macleod, a British politician. During a time of economic downturn in the UK, Macleod made a statement calling the period of stagnation and inflation a “stagflation situation.” It refers to a period of high recession accompanied by high unemployment and stagnant demand in a country’s economy.

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