As the American economy continues to struggle with high inflation and weak economic growth, concerns about the country slipping into a stagflation are popping up.
Stagflation is an economic cycle marked by slow GDP growth, high inflation, and high unemployment rate. Policymakers usually find it difficult to handle such a situation because any attempt to boost or control one factor worsens others. The United States underwent stagflation in the 1970s, but hasn’t experienced another one since. But now, experts are becoming apprehensive. All three relevant economic data—GDP growth, inflation, and unemployment rate—suggest that stagflation may be around the corner….